Poongsan Corporation’s defense sales may surpass 1.3 trillion won – Hanwha Investment & Securities

[Financial News] On the 16th, Hanwha Investment & Securities Co., Ltd. estimated that Poongsan Corporation’s defense sales will reach 1.33 trillion won in 2026. It projected 1.179 trillion won for 2024 and 1.216 trillion won for 2025, followed by further growth.
Hanwha Investment & Securities Co., Ltd. forecast consolidated sales of 4.554 trillion won in 2024, 5.158 trillion won in 2025, and 6.132 trillion won in 2026.
For the fourth quarter of 2025, it projected consolidated sales of 1.5342 trillion won and operating profit of 80.3 billion won, which is expected to fall short of the market consensus. Defense division sales are estimated at 440 billion won. This is because the volumes whose acceptance tests were delayed and became the main cause of weak results in the third quarter of 2025 are expected to be cleared in the fourth quarter of 2025. Separate defense sales are expected to surge 93.9% quarter-on-quarter.
Researcher Jiwoo Kwon explained, “U.S. subsidiary PMX Industries posted a consolidated loss of 15 billion won in the third quarter of 2025, serving as the main driver of the earnings shock. In the fourth quarter of 2025, however, it is expected to return to the black on the back of rising copper prices, which will help ease concerns over future earnings volatility. Defense subsidiary Poongsan Defense Division recorded 11 billion won in operating profit in the third quarter of 2025, acting as the only positive factor at the time.”
Kwon added, “Concerns over subsidiary earnings and volatility stemming from U.S. tariffs on sporting ammunition have already been reflected in the share price and will gradually remain limited. Based on solid large-caliber ammunition sales, the 2026 defense sales guidance is also expected to be favorable. Strong copper prices driven by tight supply and demand will support higher selling prices and inventory valuation gains in the fabricated copper products division. Global pressure to expand defense spending will increase the likelihood of additional orders and underpin the company’s valuation.”
ggg@fnnews.com Kang Gu-gwi Reporter