Models of a Korean long-range air-to-air missile, a trajectory-correction fuze and a precision-guided artillery shell on display at the Hanwha Aerospace Tech Academy 2026, held at Hanwha Building in Jung-gu in April. [Hanwha Aerospace]
Models of a Korean long-range air-to-air missile, a trajectory-correction fuze and a precision-guided artillery shell on display at the Hanwha Aerospace Tech Academy 2026, held at Hanwha Building in Jung-gu in April. [Hanwha Aerospace]

Hanwha Aerospace is drawing fresh attention as a prime beneficiary of a global defense supercycle, as analysts say a prolonged shortage of US long-range precision-guided missiles is set to reshape the industry's competitive landscape.

Rheinmetall CEO Armin Papperger said Friday (local time) that restoring US and allied missile stockpiles to normal levels would take more than two years, and that the missile market would continue to grow for the next 15 years, according to Reuters.

The joint ATACMS production venture between Rheinmetall and Lockheed Martin in Germany is not expected to generate meaningful sales until 2028, suggesting the supply crunch will be difficult to resolve in the near term.

Market observers say the remarks amount to an official confirmation of a structural supply shortage across the global missile supply chain. The wars in Ukraine and the Middle East have sharply drawn down precision-guided weapon stockpiles held by the United States and other Western nations, making large-scale production expansion unavoidable, some analysts say.

The shift is seen as a positive development for Hanwha Aerospace, which has been among the fastest to expand production capacity in South Korea's defense sector. The company has invested for years in scaling up facilities for guided weapons, propulsion systems and ammunition to prepare for rising global demand.

Securities analysts expect the competitive edge in defense to shift from technology alone toward production capacity and delivery speed. Major US and European defense companies are already accelerating construction of new factories and building out local production systems. Companies with established manufacturing infrastructure are seen as better positioned to win long-term contracts.

Hanwha Aerospace has been expanding its global footprint particularly through the K9 self-propelled howitzer, Chunmoo multiple rocket launcher and guided weapons programs. If NATO member states move ahead with plans to replenish ammunition and guided weapon stockpiles and launch new procurement programs, the company stands to gain not only direct orders but also broader opportunities to participate in supply chains through partner firms.

"The key takeaway from the Reuters report is that even the United States believes it will take years to restore its missile stockpiles — this signals the start of a long-term defense cycle, not a short-term issue," an industry official said. Companies such as Hanwha Aerospace that have proactively secured production capacity are likely to see their valuations reassessed, the official added.

Global investment banks have also said in recent research reports that Hanwha Aerospace is well-positioned to sustain growth in the global missile and ammunition stockpiling market.

JPMorgan cited rising European demand for air defense missiles as one of the underappreciated earnings upside factors for Hanwha Aerospace.

Macquarie said Hanwha Aerospace would have opportunities to win air defense missile orders in the second half of this year and into next year. The bank also highlighted the global ammunition market, noting that propellant charges represent a key bottleneck in global ammunition supply and that Hanwha Aerospace's modular charge system production capacity would double by the second half of 2027 — positioning the company to capture high-margin demand ahead of rivals.