Hanwha Engine (082740) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached KRW 318.2B and operating profit KRW 22.3B; operating margin rose to 7.0%, up 0.4 percentage points YoY.

• Deliveries from high-margin engine projects contracted since 2022 supported growth; Q1 net profit was KRW 19B.

Financial highlights

• Sales increased to KRW 318B from KRW 293B YoY; operating profit rose to KRW 22B from KRW 19B.

• Net profit was KRW 19B versus KRW 15B YoY; pretax profit was KRW 20B versus KRW 19B.

• COGS/sales improved to 89.0% from 90.1% YoY, a 1.1 percentage-point improvement.

Outlook and guidance

• 2025 new orders are expected to maintain a level similar to 2024, following order growth driven by LNG and container demand.

• 2025 global new orders are forecast at 48.9m CGT, down 29% YoY from 70.2m CGT in 2024; the 2026–2035 average is forecast at 47m CGT.