Hanwha Ocean Co (042660) Q3 2025 earnings summary

Executive summary

• Revenue for 3Q25 was KRW 3,023bn, down 8% QoQ but up 12% YoY, with operating profit at KRW 290bn (OPM 9.6%), down 22% QoQ but up over 1000% YoY.

• Net profit reached KRW 269bn (margin 8.9%), turning to profit YoY from a loss in 3Q24.

• Achieved consolidated revenue of KRW 9,460.6 billion for the first nine months of 2025, with operating income of KRW 920.1 billion and net income of KRW 633.6 billion, reflecting strong performance across core business segments.

• Significant business expansion through acquisition of plant and wind power businesses and merger of IT subsidiary, enhancing diversification and future growth potential.

• Maintained robust order backlog of KRW 28.9 trillion as of September 2025, supporting future revenue visibility.

Financial highlights

• Cumulative 2025 sales reached KRW 9,461bn (+26% YoY), with operating profit at KRW 920bn (+1235% YoY).

• Commercial vessel sales were KRW 2,464bn (-12% QoQ, +14% YoY), naval ship sales KRW 375bn (+58% QoQ, +91% YoY), offshore sales KRW 102bn (-64% QoQ, -65% YoY).

• Operating income rose sharply to KRW 920.1 billion (9M 2025) from KRW 237.9 billion (2024) and an operating loss of KRW 196.5 billion (2023).

• Net income attributable to owners reached KRW 633.5 billion (9M 2025), up from KRW 528.1 billion (2024) and KRW 159.9 billion (2023).

• Basic EPS for 9M 2025 was KRW 2,010, compared to KRW 1,648 (2024) and KRW 736 (2023).

Outlook and guidance

• Commercial vessel: LNG carrier revenue proportion to rise, with profit expansion expected from high-priced LNG carrier construction.

• Naval ship: Stable revenue and steady margins expected, driven by ongoing submarine and surface ship projects.

• Offshore: Slight revenue decline expected, but profit turnaround anticipated from change-order settlements.

• Order backlog and diversified business portfolio provide strong revenue visibility for upcoming periods.

• Continued focus on high-value LNG carriers, offshore platforms, and wind power projects to drive profitability.