Hanwha Engine (082740) Q3 2025 earnings summary

Executive summary

• Q3 revenue was 2,973억원 and operating profit 266억원; operating margin rose to 8.9%, up 3.7pp YoY.

• 9M 2025 new orders reached 17,660억원, exceeding FY2024 orders in nine months; backlog stood at 39,880억원 as of September 30.

• Higher-margin deliveries from prior-year orders and lower cost ratio supported profitability; net cash was 2,971억원 at quarter-end.

Financial highlights

• Revenue was 2,973억원 vs. 2,961억원 in Q3 2024 (+12억원 YoY); revenue declined 904억원 QoQ from 3,877억원.

• Operating profit was 266억원 vs. 153억원 YoY; net income was 303억원 vs. 106억원, and pretax income was 312억원 vs. 137억원.

• Cost ratio improved to 86.6% from 91.0% YoY, alongside higher deliveries of high-margin orders received in 2023.

Outlook and guidance

• Backlog of 39,880억원 represents roughly three years of deliveries, providing a substantial forward delivery base.

• 9M 2025 orders exceeded FY2024 orders; dual-fuel engines accounted for 88% of 2025 orders and container vessels represented 88% of ship-engine orders.

• A Pan Ocean long-term service agreement covers 2025–2029; a K-Marine agreement also spans five years, supporting aftermarket service development.