Hanwha Systems Q1 2026: Operating profit slightly up but net loss due to soaring financial costs

Consolidated revenue KRW 807.1bn (+17.0% YoY), operating profit KRW 34.3bn (+1.9% YoY) driven by defense and ICT segments.
Net loss of KRW 95.8bn (vs net profit of KRW 24.4bn in Q1 2025) due to expanded operating losses in other segment (Philly Shipyard) and deterioration in financial income/expenses.
Debt ratio increased to 114.58% from 106.50% at year-end 2025, driven by higher borrowings and bonds.
Order backlog of KRW 12.2tn (defense KRW 9.2tn, ICT KRW 0.4tn, others KRW 2.5tn), indicating solid defense pipeline.
R&D expenditure KRW 125.8bn (15.59% of sales). R&D headcount: 2,407 (defense) + 136 (ICT).
6 ongoing litigations (ordinary wage claims, damages, etc.) with total claim amount of approx. KRW 33.1bn.
After the reporting period, partial sale of Hanwha Ocean shares, PRS contract signed, and acquisition of private placement bonds worth KRW 37.5bn.