HD Korea Shipbuilding lifts Q2 profit 73% on higher-priced ship sales

in Shipbuilding News 30/07/2026

HD Hyundai’s shipbuilding intermediate holding company, HD Korea Shipbuilding & Offshore Engineering, beat market expectations in the second quarter this year as expanding sales of higher-priced ships and improved productivity supported earnings.

HD Korea Shipbuilding & Offshore Engineering said on the 29th that, on a consolidated basis, it posted second-quarter sales of 8.927 trillion won and operating profit of 1.6451 trillion won. Those figures were up 20.2% and 72.5%, respectively, from a year earlier. Net profit jumped 256.6% to 1.5942 trillion won.

Sales and operating profit exceeded the securities consensus compiled by FnGuide — 8.6329 trillion won and 1.4211 trillion won — by 3.4% and 15.8%, respectively. Compared with the previous quarter, sales rose 9.7% and operating profit increased 21.3%.

The company said productivity improved, more revenue from higher-priced ships was recognized, and profitability was boosted by selective order-taking. For shipbuilders, timing matters because earnings are often tied not just to new orders, but to when those orders are built and recognized in revenue, making the mix of vessels and construction pace important indicators to watch.

Results were especially strong at shipbuilding affiliates. HD Hyundai Heavy Industries reported sales of 6.3322 trillion won and operating profit of 1.0399 trillion won. It was the first time quarterly operating profit had exceeded 1 trillion won. Year over year, sales increased 52.7% and operating profit rose 120.6%. HD Hyundai Samho posted sales of 2.3714 trillion won and operating profit of 534.1 billion won, up 11.9% and 43.7%, respectively.

HD Hyundai Marine Engine, supported by higher sales of eco-friendly engines, recorded sales of 128.1 billion won and operating profit of 31.3 billion won. Those were up 29.1% and 79.2%, respectively, from a year earlier. HD Hyundai Energy Solutions reported sales of 165.0 billion won and operating profit of 36.1 billion won on stronger overseas sales and price increases.

By business sector, the shipbuilding segment posted sales of 7.4510 trillion won and operating profit of 1.3986 trillion won, up 19.1% and 73.6%, respectively, from a year earlier. The gains reflected higher construction productivity and greater recognition of sales from ships ordered at higher prices in the past.

In the engine and machinery segment, sales fell 1.8% to 760.2 billion won, but operating profit rose 33.6% to 268.6 billion won on strong sales of eco-friendly engines. In the offshore plant segment, as major projects moved into full execution, sales reached 377.1 billion won and operating profit was 60.1 billion won.

An HD Korea Shipbuilding & Offshore Engineering official said, “With efforts to improve productivity and expanding sales of high-price ships, performance continues to improve,” adding, “as orders continue across various ship types, including LNG carriers, container ships, and tankers, we plan to maintain a selective, profitability-focused order strategy.”

Source: ChosunBiz