Hanwha Ocean Co (042660) Q3 2026 earnings summary

Executive summary

• Q3 revenue and operating income rose YoY, while net income declined; 9M revenue, operating income and net income all exceeded the prior-year period.

• Commercial vessels and energy plants were profitable; naval ships recorded a KRW 71bn operating loss amid fixed-cost pressure and higher project cost estimates.

• Marine products generated 99.7% of 9M revenue; quarter-end construction backlog was KRW 31,706,556m.

Financial highlights

• Q3 revenue was KRW 3,413,870m, up 13% YoY and down 37% QoQ; operating income was KRW 485,690m, up 68% YoY and down 34% QoQ.

• Q3 net income was KRW 145,055m versus KRW 269,387m a year earlier; basic EPS was KRW 455 versus KRW 860.

• 9M revenue was KRW 12,066,982m, operating income KRW 1,662,868m and net income KRW 1,337,681m; each exceeded the prior-year period.

• 9M basic EPS was KRW 4,309 versus KRW 2,010 a year earlier; diluted EPS was KRW 3,657 versus KRW 1,734.

Segment performance

• Commercial vessels: Q3 revenue was KRW 2,715bn, up 10% YoY; operating profit was KRW 472bn, with a 17.4% margin, versus KRW 736bn and 22.7% in Q2.

• Naval ships: Q3 revenue was KRW 363bn, down 3% YoY; operating loss was KRW 71bn versus KRW 3bn in Q2, reflecting fixed costs and higher project cost estimates.

• Energy plant: Q3 revenue was KRW 528bn, up 94% YoY; operating profit was KRW 91bn versus KRW 10bn in Q2, benefiting from FPSO change orders and drillship charter revenue.