Hanwha Engine (082740) Q1 2026 earnings summary

Executive summary

• Q1 sales rose 8.5% YoY to KRW 345B, while operating profit increased to KRW 51B and operating margin reached 14.9%.

• New orders hit a quarterly record of KRW 1,231B, up 16.3% YoY; backlog was KRW 5,239B, with dual-fuel engines representing 85% of marine-engine backlog.

Financial highlights

• Sales were KRW 345B versus KRW 318B in Q1 2025; operating profit was KRW 51B versus KRW 22B, and net profit was KRW 53B versus KRW 19B.

• Pretax profit reached KRW 69B versus KRW 20B YoY; Q1 2025 net profit was KRW 19B, compared with KRW 102B in Q4 2025.

• Q1 sales were below Q4 2025's KRW 368B; operating profit rose from KRW 47B QoQ, while net profit fell from KRW 102B.

Outlook and guidance

• Backlog of KRW 5,239B covers more than three years of delivery volume; marine-engine backlog was KRW 5,018B as of Mar. 31, 2026.

• Global new ship orders are forecast to average 48M CGT over 2026–2033, following a 25% YoY decline in 2025 to 50.8M CGT from 75.9M CGT in 2024.

• Engine orders typically follow vessel orders by ~3 months; engine order-to-sales averages 18 months, with sales recognized on delivery rather than construction progress.