Hanwha Ocean Co (042660) Q2 2026 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 5,443bn in 2Q26, up 70% QoQ and 65% YoY, with operating profit of KRW 736bn (OPM 13.5%).

• The company reported strong revenue and profit growth for H1 2026, driven by robust performance in shipbuilding, energy plant, and special vessel segments.

• Commercial vessel segment drove growth, with strong LNG carrier revenue and high-margin project recognition.

• Energy plant segment saw a significant turnaround, posting KRW 2,068bn in revenue (+880% QoQ) and returning to profit.

• The company continues to expand globally, including U.S. market entry and offshore wind projects, and maintains a stable credit rating (A-/A2-) with solid liquidity.

Financial highlights

• Net profit reached KRW 693bn (margin 12.7%), up 366% YoY.

• Consolidated revenue for H1 2026: KRW 8,653.1bn; operating profit: KRW 1,177.2bn; net profit attributable to owners: KRW 1,192.6bn.

• Total assets at KRW 20,146bn, with cash and equivalents up 37% QoQ to KRW 1,472bn.

• Net debt reduced by 10% QoQ to KRW 4,566bn; net debt/equity improved to 61%.

• Shareholders’ equity increased 10% QoQ to KRW 7,528bn.

Outlook and guidance

• Commercial vessel revenue expected to grow on high-priced project recognition and post-2024 high-margin projects.

• The company expects continued strong demand for LNG carriers, offshore wind, and defense vessels, with a robust order backlog of KRW 33 trillion as of June 2026.

• Market volatility from geopolitical risks and energy transition is expected, but the company is positioned to benefit from global decarbonization and energy security trends.

• Ongoing investments in production capacity and R&D for eco-friendly and digital solutions.

• Energy plant segment expects H2 recovery driven by new project initiation and earnings recovery efforts.