Samsung Heavy Industries (010140) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was KRW 2,902.3 billion, up 16.4% YoY, with operating profit at KRW 273.1 billion and net profit attributable to controlling interests at KRW 101.6 billion.

• Shipbuilding/offshore accounted for 94.7% of sales, with civil engineering/construction at 5.3%.

• Gross margin improved to 13.7% from 9.5% YoY.

• Pre-tax profit was KRW 129.6 billion, impacted by FX losses and interest expenses.

• Cash and cash equivalents increased to KRW 1,038.0 billion from KRW 772.6 billion at the end of 2025.

Financial highlights

• Revenue: KRW 2,902.3 billion (up 16.4% YoY); operating profit: KRW 273.1 billion (up 122% YoY); margin at 9.4%.

• Net profit: KRW 101.6 billion (up 10.3% YoY); basic EPS: KRW 119.

• Total assets: KRW 16,568.7 billion; total equity: KRW 4,455.5 billion.

• Turned to net cash position of KRW 0.5 trillion at quarter-end, first time in 14 years.

• Cash flow from operations: KRW 1,488.8 billion; investing outflow: KRW 330.6 billion; financing outflow: KRW 896.5 billion.

Outlook and guidance

• 2026 revenue guidance: KRW 12.8 trillion, up 20% from 2025.

• Order target: $13.9 billion, up $6 billion YoY; 2026 YTD orders at $3.4 billion.

• Shipbuilding market remains robust, with global order backlog up 26% YoY; tanker and LNG carrier demand expected to remain strong.

• Stable production backlog for about three years; focus on profitability-driven orders.

• Construction sector faces uncertainty due to rising costs and weak demand.