LIG Defense&Aerospace shares slide after third-quarter earnings miss
LIG Defense&Aerospace shares fell as much as 14% intraday after weak Q3 results missed forecasts; Nomura cut its target but kept its buy rating.
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what happened
Shares of South Korean missile maker LIG Defense&Aerospace dropped sharply in early trading on Monday after the company posted third-quarter results that fell short of expectations, according to Dow Jones Newswires. At one point the stock was down as much as 14%, before recovering some ground; it last traded 7.7% lower at 301,000 won. Operating profit for July to September dropped 25% year on year to 68 billion won ($49.9 million), far under the 103 billion won consensus compiled by Nomura. The company also reported a net loss of 8.2 billion for the quarter.
Nomura analyst Eon Hwang pointed to bigger-than-expected losses at the robotics affiliate and higher R&D spending. Delayed component deliveries also hurt exports of medium-range surface-to-air missiles to the Middle East. Hwang said the wider defense sector has been losing ground since the US midterm vote, as investors price in a possible easing of the Middle East conflict. A bribery probe involving an LIG employee, which led to a temporary ban on bidding for local defense projects, is weighing on sentiment too.
Nomura cut its target price to 600,000 won from 1,100,000 won but kept its buy rating, saying demand for missile defense remains solid and that it expects new contracts in the UAE, Saudi Arabia, Qatar, Kuwait and Bahrain. Hanwha Aerospace and Korea Aerospace Industries also traded lower.
why it matters
The drop shows how quickly the group can move when a bellwether disappoints. For traders, the mix of weak profit, a bidding ban and a lower analyst target is the key backdrop, while the sector's broader direction depends on Middle East developments.
market impact
LIG and other Korean defense stocks: weak profit and a bidding ban pressure the shares
- LIG Defense&Aerospace shares pressure down — weaker-than-expected quarterly profit and a temporary bidding ban
- South Korean defense stocks pressure down — sector sell-off tied to hopes for an end to the Middle East conflict
tags
instruments
sources
- LIG Defense&Aerospace Shares Fall After Earnings Miss — Dow Jones Newswires, 9 November 2026 at 04:02 UTC
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