HD Hyundai Heavy Industries (329180) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated results include the full-period impact of the merger with HD Hyundai Mipo, expanding shipbuilding capacity and asset base.

• Revenue increased 20.2% year-over-year and 13.9% quarter-over-quarter, with operating profit up 330.6% quarter-over-quarter and 57.8% year-over-year.

• Net income attributable to controlling interest surged 58.0% quarter-over-quarter and 172.3% year-over-year.

• Earnings improvement was driven by productivity gains, improved vessel mix, and higher vessel prices.

• No one-off items impacted consolidated results, though offshore segment margins benefited from project-specific recognition.

Financial highlights

• Q1 2026 sales reached KRW 5,916.3 billion, up 54.8% year-over-year and 13.9% quarter-over-quarter.

• Operating profit was KRW 905.4 billion, up 108.8% year-over-year and 57.5% quarter-over-quarter; margin improved to 15.3%.

• Net income was KRW 773.8 billion, with basic EPS of KRW 7,374.

• Cash and cash equivalents at quarter-end were KRW 2,975.5 billion.

• Non-operating income included a KRW 290.0 billion FX gain and a KRW 134.0 billion derivative loss.

Outlook and guidance

• Order intake in Q1 reached $6.39 billion, achieving 37.5% of the full-year target.

• Full-year new order target set at $17.03 billion across subsidiaries.

• Market outlook remains positive, with robust demand for LNG, VLGCs, and container ships, but forecasts are subject to change due to market and strategic shifts.

• If no further orders are secured this year, revenue may decline from 2027 onward.

• The company targets a dividend payout ratio of at least 30% of separate net income, with flexibility based on cash flow and investment needs.