Hanwha Systems boosts defense revenue in first half 2026

The Tip Desk · August 20, 2026 · 2 min read

Consolidated revenue reached 1.92 trillion won for the period ending June 2026.

The defense electronics and ICT provider Hanwha Systems reported consolidated revenue of 1.92 trillion won for the first half of 2026. The defense segment served as the primary driver, contributing 1.17 trillion won, which represented 60.9% of total revenue. This reflects an increase from the 900.5 billion won recorded in the same period of 2025.

Operating profit for the defense division rose to 172.6 billion won from 102.7 billion won year-on-year. The company maintains a significant backlog in this sector, with an order balance of 8.53 trillion won against total orders of 9.70 trillion won. The defense business utilizes direct sales to government agencies, with the Defense Acquisition Program Administration accounting for 20.1% of its primary customers.

Growth also occurred in the ICT segment, where revenue rose to 359.5 billion won from 288.5 billion won in the prior year's first half. This division, which focuses on system integration and IT outsourcing, generated an operating profit of 34.1 billion won. The company is currently developing cloud-based and collaboration solutions to expand its market reach into public sectors and digital transformation industries.

Other business activities, including digital platforms and shipbuilding, contributed 395.4 billion won in revenue. This segment experienced a loss, with an operating deficit of 69.1 billion won compared to a 58.5 billion won loss in the first half of 2025. The company has expanded its global footprint by acquiring Hanwha Philly Shipyard Inc. to enter the United States naval maintenance, repair, and overhaul market.

Overall consolidated net loss for the first half of 2026 was 43.0 billion won, a reversal from the 70.7 billion won net profit reported in the same period of 2025. This result follows a total consolidated operating profit of 137.9 billion won for the period.

Cash positions shifted significantly as the company ended the period with 1.59 trillion won in cash and cash equivalents. This followed a substantial increase in short-term borrowings of 2.47 trillion won, offset by the repayment of 912.6 billion won in short-term debt.