Korea Aerospace Industries (047810.KS), or KAI, posted its highest-ever first-quarter revenue, driven by the expansion of its domestic and overseas platform businesses.
KAI said Wednesday that its first-quarter revenue rose 56.3% year-on-year to 1.09 trillion won ($800 million), the largest figure for any first quarter in the company's history. Operating profit over the same period climbed 43.4% to 67.1 billion won.
First-quarter new orders totaled 309.3 billion won, up 29.4% from a year earlier. KAI said the growth reflects business expansion into follow-on areas beyond complete aircraft deliveries, including performance upgrades for air-to-ground communications equipment and performance-based logistics (PBL) support for the Philippines' FA-50PH.
The strong results stem from the combined performance of KAI's diverse business platforms, including stable domestic operations and overseas business expansion.
Earnings growth was led by the steady progress of domestic system development programs, including the next-generation Korean fighter KF-21 — whose first mass-production unit was rolled out in late March — as well as the Marine Attack Helicopter (MAH) and Mine Countermeasure Helicopter (MCH), both scheduled for development completion this year. Deliveries of complete aircraft, such as the Light Armed Helicopter (LAH) and FA-50GF trainers, also contributed.
Complete aircraft exports posted the strongest growth, jumping 79.5% year-on-year to 307.1 billion won. Overseas business continued to expand with the delivery of two T-50i aircraft to Indonesia and revenue recognition for the FA-50M (Malaysia) and FA-50PL (Poland) programs.
The aerostructures business, buoyed by the recovering commercial aviation market, generated 222.8 billion won in revenue, up 11.6% from a year earlier. The satellite segment, drawing attention as a future growth driver, also contributed 10.4 billion won to the top line.
"By achieving double-digit earnings growth in the first quarter, we have taken a strong first step toward meeting our annual revenue guidance of 5.7 trillion won," a KAI official said. "This year, record-high results are achievable through the KF-21 deployment with the Korean Air Force, as well as deliveries of the T-50i to Indonesia and the FA-50M to Malaysia."
