Speco’s KRW 4.6 Billion Deal with Hanwha Ocean: What Happened?

On September 11, 2025, Speco announced a significant contract with Hanwha Ocean for the supply of steering gear and other components for naval vessels. This long-term contract, valued at KRW 4.6 billion, spans from September 11, 2025, to December 31, 2030 (5 years and 3 months). This represents 16.97% of Speco’s 2024 consolidated revenue, indicating a substantial contribution to the company’s revenue growth.

Why is this contract significant?

  • Stable Revenue Stream: The long-term contract ensures predictable revenue flow for the next 5 years and 3 months, strengthening Speco’s business planning.
  • Expected Profitability Improvement: Supplying high-value-added products like steering gear and other components is projected to positively impact Speco’s profitability.
  • Enhanced Defense Business Competitiveness: The contract with Hanwha Ocean, a leading domestic defense company, validates Speco’s technical capabilities and credibility.
  • Business Diversification: This deal will drive growth in Speco’s deck machinery business segment, contributing to a more diversified and stable business portfolio.

What does this mean for investors?

This contract is a positive sign for Speco’s mid-to-long-term growth. Investors should pay close attention to the growth potential within the defense sector. However, continuous monitoring of external factors like raw material prices and exchange rate fluctuations is also crucial.

Key Points to Watch:

  • Securing additional defense contracts
  • Revenue and profitability improvement in the deck machinery business
  • Fluctuations in raw material prices and exchange rates

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