HD Hyundai Heavy Industries (329180) Q2 2025 earnings summary

Executive summary

• Sales rose 8.5% quarter-over-quarter, driven by more working days and higher offshore and engine revenue.

• Operating profit increased 8.7% quarter-over-quarter, reflecting sales growth and improved profitability in offshore and engine segments.

• Net income attributable to controlling interest declined 25.8% quarter-over-quarter but grew 36.9% year-over-year.

• Report covers the semi-annual period ending June 30, 2025, for a major shipbuilding, offshore plant, and engine manufacturer with three consolidated subsidiaries.

• The company operates in shipbuilding (70% of sales), offshore plants (5%), and engine/machinery (24%), with a global customer base and significant R&D focus on eco-friendly and high-value products.

Financial highlights

• 2Q25 sales reached 4,147.1 bn KRW, up 8.5% QoQ and 6.8% YoY.

• Operating profit was 471.5 bn KRW, up 8.7% QoQ and 141.1% YoY; OPM improved to 11.4%.

• Net income was 210.9 bn KRW, down 25.8% QoQ but up 36.9% YoY.

• Consolidated revenue for H1 2025: KRW 7,969.6 billion, down from KRW 14,486.5 billion in FY2024.

• Operating income for H1 2025: KRW 905.2 billion, up from KRW 705.2 billion in FY2024.

Outlook and guidance

• Sales growth expected to continue, supported by increased working days and robust offshore and engine demand.

• Profitability improvements anticipated from ongoing project execution and favorable product mix.

• Shipbuilding market softened in H1 2025 after record orders in 2024, but long-term demand for eco-friendly and dual-fuel vessels remains strong.

• Offshore plant sector expects continued investment due to global energy transition and geopolitical factors.

• Engine/machinery segment anticipates sustained demand for eco-friendly engines, especially dual-fuel and alternative fuel types.