Korea Defense: Placing LIG D&A on Positive Catalyst Watch ahead of 2Q26 earnings; broad-based beat expected on strong execution and favorable FX

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Korea Defense: Placing LIG D&A on Positive Catalyst Watch ahead of 2Q26 earnings; broad-based beat expected on strong execution and favorable FX

J P M O R G A N Asia Pacific Equity Research

02 July 2026

Korea Defense

Placing LIG D&A on Positive Catalyst Watch ahead of

2Q26 earnings; broad-based beat expected on strong

execution and favorable FX

We believe Korea defense names are well positioned heading into 2Q26 earnings Korea Defense

ACseason: after June’s de-rating on limited order conversion visibility post the US- Simon Han

Iran MOU, we view the market debate to be centered on order timing rather than (82-2) 758-5711

demand and expect the next leg to be driven by order cadence and margin/mix simon.x.han@jpmorgan.com

(including FX) rather than new order headlines. 2Q results should confirm who is J.P.BranchMorgan Securities (Far East) Limited, Seoul

leading the pack, while management commentary should validate which names

Jeongsuk Woo

can sustain/accelerate output/delivery heading into 2H26. We will focus on late (82-2) 758 5703

Jul–Aug earnings calls for concrete disclosures on production run-rate, jeongsuk.woo@jpmorgan.com

bottlenecks, delivery cadence/recognition timing, and clear order-conversion J.P. Morgan Securities (Far East) Limited, Seoul

Branch

milestones, with incremental catalysts from Canada CPSP, the U.S.

howitzer preferred bidder selection, and NATO-related cooperation signals Karen Li, CFA

(852) 2800-8589

during the July NATO Summit. We place LIG D&Aon Positive Catalyst karen.yy.li@jpmorgan.com

Watch (see note) with the cleanest earnings beat/ramp setup on top of incremental J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

order optionality across ME/EU/ASEAN; Hanwha Aerospace and Hyundai Morgan Broking (Hong Kong) Limited