Hanwha Engine (082740) Q4 2025 earnings summary

Executive summary

• FY25 sales reached KRW 1,371B and operating profit KRW 130B, with a 9.5% operating margin; higher-profit engine deliveries supported improved profitability.

• New orders rose 33.2% YoY to KRW 2,197B, while year-end backlog increased 22.4% YoY to KRW 4,143B.

Financial highlights

• FY25 sales were KRW 1,371B, up KRW 169B YoY; gross profit was KRW 185B versus KRW 116B in FY24.

• Operating profit was KRW 130B versus KRW 72B in FY24; net profit was KRW 174B versus KRW 79B.

• 4Q25 sales were KRW 368B; quarterly revenue growth was driven by domestic deliveries of LNG carrier and container-ship engines.

Outlook and guidance

• Backlog of KRW 4,143B represented roughly three years of deliveries; marine engines accounted for 95.5% of backlog.

• Engine orders are placed roughly three months after vessel orders, with an average of 18 months from engine order to engine sales; revenue is recognized on delivery.