HMM (011200) investor relations material

Executive summary

• Revenue for Q1 2026 was KRW 2,718,734 million, down 4.8% year-over-year, with operating income at KRW 269,094 million, a 56.2% decline from Q1 2025.

• Net profit for the quarter was KRW 353,610 million, a 52.2% decrease year-over-year.

• Operating margin dropped to 9.9% from 21.5% in the prior year quarter.

• The container segment contributed 83.54% of revenue, bulk 14.82%, and other operations 1.64%.

• The company maintains a global logistics network and continues to invest in fleet expansion and environmental compliance.

Financial highlights

• Q1 2026 revenue decreased from KRW 2,854,682 million in Q1 2025.

• Cost of goods sold (COGS) increased by 10.8% year-over-year, raising the COGS to sales ratio to 85.7%.

• Charterage costs rose 15.9% year-over-year due to higher slot costs.

• Cash and cash equivalents at quarter-end were KRW 798,455 million, down from KRW 1,760,767 million at the end of 2025.

• Gross margin for Q1 2026 was 14.3%, compared to 26.3% in Q1 2025.

Outlook and guidance

• The company expects continued volatility in shipping rates due to geopolitical tensions, especially in the Middle East.

• Container market faces ongoing uncertainty from U.S. tariff policies and U.S.-China decoupling, with demand growth varying by route.

• Dry bulk market expected to remain strong but volatile due to Middle East risks; tanker market to normalize after a temporary spike.

• Ongoing investments in eco-friendly vessels and digital capabilities are expected to support long-term competitiveness.

• Strategies include operational efficiency improvements, fuel surcharges, and long-term contracts for bulk.