Hanwha Engine (082740) Q2 2026 earnings summary

Executive summary

• 2Q26 sales were KRW362bn, down 6.6% YoY; operating profit was KRW38bn and operating margin was 10.5%, up 1.8pp YoY.

• Backlog reached a record KRW5.979tn at June 30, 2026, up 44.1% from FY25-end; 1H26 orders totaled KRW2.127tn.

Financial highlights

• 1H26 new orders increased 31.5% YoY to KRW2.127tn, with balanced intake across vessel types.

• Revenue declined as engine deliveries fell by 25 units YoY; the lower delivery volume was described as a one-time reduction.

• Deliveries of orders secured since 2024 supported higher profitability despite lower marine engine sales.

Outlook and guidance

• 2026 global newbuild orders are expected to remain in line with 2025; the 2027–2036 average is forecast at 49m CGT.

• The four-stroke factory was under construction in 2Q26, with first shop tests and first engine delivery scheduled from 3Q26 onward; planned capacity is up to 180 units annually.