Corporate Logo(source: koreaaero.com)
On July 15, Korea Investment & Securities Co.,Ltd, stated that Korea Aerospace Industries (047810) is expected to report consolidated second-quarter revenue of 859.3 billion won, down 3.6% year-on-year, with operating profit declining 7.9% to 68.5 billion won. The brokerage noted that while revenue is projected to fall 3.5% short of consensus estimates, operating profit is expected to exceed expectations by 1.1%.
Jang Nam-hyun, an analyst at Korea Investment & Securities explained, “The recognition of key mass production revenue in the domestic business and finished aircraft export segment is largely concentrated in the second half of the year.” As a result, both revenue and profit are expected to decline year-on-year in the second quarter. However, he added that the weak performance has already been priced into market expectations.
Despite the subdued second-quarter outlook, Jang maintained a positive view on the company’s long-term growth, stating, “Although Q2 results may be soft, the outlook for annual profit growth beginning in 2025 remains unchanged.” He projected that operating profit in 2025 will reach 331.2 billion won, representing a 37.6% increase from the previous year.
Looking ahead to 2026, Jang forecast that revenue recognition in the domestic and finished aircraft export businesses will accelerate further, continuing the company’s earnings recovery. He expects revenue to grow 29.4% year-on-year to 5.1325 trillion won, with operating profit rising 29.9% to 430.1 billion won.
Jang also emphasized the expanding export pipeline as a key growth driver. “Following the June 2 contract with the Philippine Department of National Defense for 12 FA-50 aircraft, the company still has an active FA-50 export pipeline across Asia, the Middle East, and Latin America,” he said.
He added that the range of exportable products is broadening to include the Surion helicopter and the KF-21 fighter jet, accelerating the pace of overseas orders. “We expect a Surion export deal with a Middle Eastern country to be signed within this year. Additionally, Saudi Arabia continues to express interest in the KF-21, which has already secured an initial production contract from the Defense Acquisition Program Administration,” Jang said, adding that these developments signal further momentum in export growth.
*[KOSPI]Korea Aerospace Industries(047810) engages in the aerospace industry, including the development and production of military aircraft, civil aircraft, and helicopters, as well as MRO services(Maintenance, Repair, and Overhaul) for operated aircraft. Market capitalization is 8.324 trillion won(as of July 14, 2025, closing price).
Corporate Logo(source: koreaaero.com)
On July 15, Korea Investment & Securities Co.,Ltd, stated that Korea Aerospace Industries (047810) is expected to report consolidated second-quarter revenue of 859.3 billion won, down 3.6% year-on-year, with operating profit declining 7.9% to 68.5 billion won. The brokerage noted that while revenue is projected to fall 3.5% short of consensus estimates, operating profit is expected to exceed expectations by 1.1%.
Jang Nam-hyun, an analyst at Korea Investment & Securities explained, “The recognition of key mass production revenue in the domestic business and finished aircraft export segment is largely concentrated in the second half of the year.” As a result, both revenue and profit are expected to decline year-on-year in the second quarter. However, he added that the weak performance has already been priced into market expectations.
Despite the subdued second-quarter outlook, Jang maintained a positive view on the company’s long-term growth, stating, “Although Q2 results may be soft, the outlook for annual profit growth beginning in 2025 remains unchanged.” He projected that operating profit in 2025 will reach 331.2 billion won, representing a 37.6% increase from the previous year.
Looking ahead to 2026, Jang forecast that revenue recognition in the domestic and finished aircraft export businesses will accelerate further, continuing the company’s earnings recovery. He expects revenue to grow 29.4% year-on-year to 5.1325 trillion won, with operating profit rising 29.9% to 430.1 billion won.
Jang also emphasized the expanding export pipeline as a key growth driver. “Following the June 2 contract with the Philippine Department of National Defense for 12 FA-50 aircraft, the company still has an active FA-50 export pipeline across Asia, the Middle East, and Latin America,” he said.
He added that the range of exportable products is broadening to include the Surion helicopter and the KF-21 fighter jet, accelerating the pace of overseas orders. “We expect a Surion export deal with a Middle Eastern country to be signed within this year. Additionally, Saudi Arabia continues to express interest in the KF-21, which has already secured an initial production contract from the Defense Acquisition Program Administration,” Jang said, adding that these developments signal further momentum in export growth.
*[KOSPI]Korea Aerospace Industries(047810) engages in the aerospace industry, including the development and production of military aircraft, civil aircraft, and helicopters, as well as MRO services(Maintenance, Repair, and Overhaul) for operated aircraft. Market capitalization is 8.324 trillion won(as of July 14, 2025, closing price).