HD Hyundai Heavy Industries (329180) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated results include the full-period impact of the merger with Mipo, driving growth in the mid-sized vessel and engine divisions.

• Revenue increased 20.2% year-over-year and was nearly flat sequentially, while sales rose 13.9% quarter-over-quarter.

• Operating profit rose 330.6% quarter-over-quarter and 57.8% year-over-year, with net income attributable to controlling interest up 58.0% QoQ and 172.3% YoY.

• Earnings improvement was driven by productivity gains, improved vessel mix, and higher vessel prices.

• No one-off items impacted overall results, though offshore plant segment saw project-specific margin recognition.

Financial highlights

• Consolidated revenue up 20.2% year-over-year, down 0.1% quarter-over-quarter; 1Q26 sales reached KRW 5,916.3bn, up 13.9% QoQ and 54.8% YoY.

• Operating profit was KRW 905.4bn, up 57.5% QoQ and 108.8% YoY; margin improved to 15.3%.

• Net income was KRW 773.8bn, up 58.0% QoQ and 172.3% YoY.

• All major subsidiaries maintain a net cash position; consolidated net cash is KRW 8.7 trillion.

• Non-operating income included a KRW 290.0bn FX gain and a KRW 134.0bn derivative loss.

Outlook and guidance

• Order intake in Q1 reached $6.39 billion, achieving 37.5% of the full-year target; full-year new order target set at $17.03 billion.

• Market outlook remains positive, with robust demand for LNG, VLGCs, and container ships, but forecasts are subject to change due to market and strategic shifts.

• If no further orders are secured this year, revenue may decline from 2027 onward.