Hanwha Ocean Co (042660) Q4 2025 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 12,784B in 2025, up 19% year-over-year, with operating profit of KRW 1,168B, a 391% increase from 2024.

• Commercial vessel business led growth, with revenue up 21% and operating profit up 769% year-over-year.

• Offshore business saw a 35% revenue decline year-over-year, turning to a loss for the full year despite a profit turnaround in 4Q25.

• Net profit for 2025 reached KRW 1,246B, up 136% year-over-year.

Financial highlights

• 4Q25 consolidated revenue was KRW 3,323B, up 10% sequentially and 2% year-over-year.

• 4Q25 operating profit was KRW 248B, down 15% sequentially but up 46% year-over-year.

• Commercial vessel segment 4Q25 revenue rose 9% sequentially, but operating profit fell 44% due to higher labor and bonus costs.

• Offshore segment posted a profit in 4Q25 after prior losses, driven by FPSO project change order recognition.

• Balance sheet at year-end 2025: total assets KRW 20,141B (+13%), total liabilities KRW 13,966B (+8%), shareholders' equity KRW 6,175B (+27%).

Outlook and guidance

• Commercial vessel revenue expected to see modest growth in 2026, with profit growth driven by high-margin awards.

• Naval ship segment anticipates modest revenue growth and improved profitability from major overseas orders.

• Offshore segment expects H1 2026 revenue impact from project completions, with H2 recovery from new projects and profit turnaround from change-order settlements.