Hanwha Systems posts record earnings in 2024 on brisk defense sales

Hanwha Systems Co., a leading South Korean defense company, reported its best-ever earnings last year thanks to brisk sales of its defense systems in overseas markets.

The company announced in a regulatory filing on Friday that its consolidated operating profit in 2024 jumped 79% from the previous year to reach 219.3 billion won ($151.5 million), marking its record-high annual profit.

Sales and net profit also added 14.3% and 29.8% on-year to 2.8 trillion won and 445.2 billion won, respectively, which were also the highest-ever results.

The strong performance was driven by solid global demand for its defense systems, the company said.

Its ICT business and new growth drivers – urban air mobility (UAM) and electronically steerable antenna – also fared well.

Hanwha Systems plans to discover new overseas markets for its world’s best MFR systems and small synthetic aperture radar (SAR) satellites to maintain the growth streak this year, the company said.

WORLD’S BEST MFR SYSTEM

Hanwha Systems bagged a $867 million deal to supply its advanced mobile multi-function radar (MFR) system to Saudi Arabia last July.

The deal was a larger $3.2 billion contract sealed in February last year between a LIG Nex1 Co.-led Korean consortium and Riyadh for the export of the mid-range surface-to-air missile (M-SAM) system known as Cheongung II.

MFR, the core part of the Cheongung II missile system, is a highly advanced radar that can simultaneously detect, track and intercept not only enemy fighters but also ballistic missiles approaching from all directions.

It integrates multiple functions, such as detection, tracking, electronic warfare and missile guidance, into a single system.

Last year, it also delivered its MFR systems to the United Arab Emirates (UAE) and fire control systems, effectively the brain of an armored vehicle, to Poland as part of Korea’s 9 trillion won deal to supply 820 units of the K2 tank produced by Hyundai Rotem Co.

It also started mass-producing the fourth batch of its tactical information communication network (TICN) and the second batch of the next-generation military tactical multi-band multirole radio (TMMR) systems last year.

Hanwha Systems shares ended down 1.9% at 25,300 won on Friday despite its upbeat results.

For the October-December period, the company reported a consolidated operating profit of 29.1 billion won, up 60.4% from a year earlier, while sales added 19.4% to 933.5 billion won.  

Write to Sang Hoon Sung at uphoon@hankyung.com

Sookyung Seo edited this article.