HD Hyundai Heavy Industries (329180) Q2 2026 earnings summary

Executive summary

• Consolidated revenue rose 10% quarter-over-quarter and 20% year-over-year, driven by higher vessel prices, productivity gains, and favorable exchange rates.

• Operating profit surged 21% quarter-over-quarter and 73% year-over-year, with no one-off items impacting results.

• Net income grew 6.2% quarter-over-quarter and 289.8% year-over-year.

• The group operates in shipbuilding (78% of sales), engine/machinery (15%), and offshore plant (7%), with a global customer base and significant R&D in eco-friendly and high-value-added vessels.

• Major events include the completion of the HD Hyundai Mipo merger, new orders for LNG/ammonia-fueled ships, and ongoing expansion into renewable energy and SMR nuclear projects.

Financial highlights

• Q2 average exchange rate increased by KRW 36 versus the prior quarter, contributing KRW 30 billion in profit.

• 2Q26 sales reached KRW 6,332.2bn, up 7.0% QoQ and 52.7% YoY.

• Operating profit was KRW 1,039.9bn, up 14.9% QoQ and 120.6% YoY; OPM improved to 16.4%.

• Consolidated revenue for H1 2026 was ₩12,248.5 billion, down from ₩17,580.6 billion in H1 2025, reflecting project delivery timing and the cyclical nature of shipbuilding.

• Gross margin improved to 20.6% (H1 2025: 16.8%), and basic EPS was ₩15,209.

Segment performance

• Shipbuilding sales up 9.2% QoQ and 74.7% YoY, with operating profit up 19.4% QoQ and 152.4% YoY.

• Offshore plant sales declined 17.6% QoQ but rose 53.3% YoY; operating profit down 30.6% QoQ, up 63.3% YoY.

• Engine & Machinery sales up 8.3% QoQ, down 7.5% YoY; operating profit up 27.6% QoQ and 28.5% YoY.

• Hyundai Energy Solution achieved record quarterly earnings with a 21.9% operating margin.

• Segment assets: Shipbuilding ₩15,501.8bn, Offshore plant ₩1,323.8bn, Engine/machinery ₩3,793.1bn.