LIG Defense&Aerospace (079550) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 was KRW 2,277,951 million, down from KRW 4,306,936 million in FY2025, reflecting the cyclical nature of defense contracts and project-based revenue recognition.

• Operating income for H1 2026 was KRW 276,753 million, with net income attributable to owners at KRW 222,532 million.

• The company maintained a strong order backlog of KRW 24,578,083 million and a high export ratio (27.9% of sales in H1 2026).

• Major contracts included significant exports to Saudi Arabia, Iraq, and Malaysia, and continued leadership in precision-guided munitions and C4ISR systems.

Financial highlights

• H1 2026 revenue: KRW 2,277,951 million; operating income: KRW 276,753 million; net income: KRW 222,532 million.

• Gross margin improved to 39.1% in H1 2026 from 37.5% in H1 2025.

• EPS for H1 2026 was KRW 10,187, compared to KRW 11,604 for FY2025.

• Debt ratio at 434.05% as of June 2026, slightly improved from 446.35% at end-2025.

• Cash and cash equivalents at period end: KRW 42,670 million.

Outlook and guidance

• The company expects continued growth in export markets, with a focus on precision-guided munitions, C4ISR, and unmanned systems.

• Ongoing investments in R&D and production capacity to support future contracts and technological leadership.

• Dividend policy targets a payout ratio of 25% of net income, with a minimum dividend of KRW 500 per share for stability.