Seoul: LIG Nex1 Co., a South Korean firm specializing in precision-guided missiles and weaponry, announced that its net profit for the second quarter more than doubled compared to the previous year. This increase is attributed to a surge in both weapons production and exports.
According to Yonhap News Agency, LIG Nex1's net income for the April-June period reached 100.6 billion won (US$72.9 million), marking a 120.1 percent increase from the same timeframe last year. The company's operating profit saw a rise of 58 percent year-on-year, amounting to 77.6 billion won, while sales experienced a 56.3 percent jump to 945.4 billion won.
Despite these increases, the operating profit did not meet the market consensus of 93.4 billion won, as compiled by Yonhap Infomax, the financial news division of Yonhap News Agency. LIG Nex1 attributed the profit growth to heightened orders driven by their ramped-up production of key defense systems. Notable among these are the Cheongung-II medium-range surface-to-air missile system and the next-generation tactical multiband multimode radio (TMMR).
As of the end of June, the company's order backlog reached a record 23.47 trillion won, reflecting an increase of 581.4 billion won from the prior quarter. LIG Nex1 emphasized its ongoing investment in research and development infrastructure, aimed at adapting to evolving global defense trends and ensuring sustained growth.
"We will continue to strengthen our sustainable growth engines by expanding into new businesses and overseas markets," a company official stated, highlighting the firm's commitment to long-term strategic growth initiatives.