Hanwha Aerospace: 2Q26 OP strong with standout export margins; ammunition and missiles are next leg of upgrades

研报英文原文证据摘录

Hanwha Aerospace: 2Q26 OP strong with standout export margins; ammunition and missiles are next leg of upgrades

anges (FYE Dec)

Prev Cur Δ

• 2Q26 earnings review: 2Q26 sales/OP were both a beat, but even excluding Adj. EPS - 26E (W) 48,933 52,424 7.1%

beats from Hanwha Ocean and Hanwha Systems, came largely in-line with our Adj. EPS - 27E (W) 58,564 64,477 10.1%

street-high estimates. While absolute land systems export sales were lower by

17% vs. JPMe, export OPM came in better at high-30% (assuming HSD% Quarterly Forecasts (FYE Dec)

domestic OPM) to drive the overall strength. Poland Chunmoo and Adj. EPS (W)

2025A 2026E 2027E

ammunition/rocket sales are guided to have contributed to 50%+ of export Q1 1,886 5,056A 11,666

sales followed by Egypt and Australia projects. Q2 4,228 12,784A 15,727

• Earnings checklist follow-up (please refer to table 1): From the conference Q3Q4 12,2669,436 14,38320,201 16,61220,472

and IR follow-up, we received incremental color on (1) the defense export sales FY 27,247 52,424 64,477

trajectory for 2H, (2) land systems export margin profile, (3) order outlook for

key pipelines, and (4) ammunition business progress. The company reiterated Style Exposure

robust land systems sales into 2H, particularly on Poland K9 and ammunition/

rocket deliveries, while Egypt and Australia should also likely grow; Romania

is also guided to start delivery, which we think could be captured in 2H sales.

On export margins, while FX was a contributor in 2Q, we view the high-30%

OPM level as structurally solid; 3Q OPM could see mixed impacts from a

higher Poland mix versus KRW strengthening, but we still raise our export

OPM estimate by 1%p for 2H and 2027.

• Order update: The company highlighted several orders in the pipeline. The