Hanwha Engine (082740) Q3 2026 earnings summary

Executive summary

• Q3 revenue was KRW 413,611m, up 39.1% YoY; operating income was KRW 40,920m and OPM was 9.9%.

• Q3 orders rose 58.4% YoY to KRW 2.8tn; backlog reached KRW 56,501억원, up 36.4% vs. FY25-end.

• 9M revenue was KRW 1,121,071m, operating income KRW 130,210m and net income KRW 97,671m; Q3 net income fell YoY to KRW 11,617m from KRW 30,300m.

Financial highlights

• Q3 gross profit was KRW 53,827m vs. KRW 40bn in Q3 2025; COGS was 87.0% of sales vs. 86.6% YoY and 79.3% QoQ.

• 9M basic EPS was KRW 1,166 vs. KRW 853 YoY; diluted EPS was KRW 1,164 vs. KRW 853.

• 9M operating cash flow was KRW 296,090m vs. KRW 250,669m; cash and cash equivalents were KRW 155,024m at quarter-end, down from KRW 276,708m at FY25-end.

• Total assets were KRW 2,035,309m, liabilities KRW 1,416,394m and equity KRW 618,915m at September 30, 2026.

Outlook and guidance

• Long-term demand drivers include environmental regulation, LNG-, methanol- and ammonia-fueled vessels, aging-ship replacement, marine electrification and retrofit projects.

• Planned investment totals KRW 145,613m in 2026, KRW 197,973m in 2027 and KRW 173,356m in 2028; amounts and timing may change with business conditions.

• Newbuild orders may be constrained as Red Sea and Panama Canal disruptions ease; higher Chinese capacity and competitive pricing add uncertainty.