HD Hyundai Heavy Industries (329180) Q2 2026 earnings summary

Executive summary

• Consolidated revenue rose 10% quarter-over-quarter and 20% year-over-year, driven by higher vessel prices, productivity gains, and favorable exchange rates.

• Operating profit surged 21% quarter-over-quarter and 73% year-over-year, with no one-off items impacting results.

• Order intake for the first half reached $16.38 billion, achieving 96.2% of the annual target, with a strong focus on high value-added gas carriers.

• Sales rose 7.0% quarter-over-quarter, driven by shipbuilding and engine divisions.

• Net income grew 6.2% quarter-over-quarter and surged 289.8% year-over-year.

Financial highlights

• Q2 average exchange rate increased by KRW 36 versus the prior quarter, contributing KRW 30 billion in profit.

• 2Q26 sales reached KRW 6,332.2bn, up 7.0% QoQ and 52.7% YoY.

• Operating profit was KRW 1,039.9bn, up 14.9% QoQ and 120.6% YoY; OPM improved to 16.4%.

• Net income attributable to controlling interest was KRW 822.1bn, up 6.2% QoQ and 289.8% YoY.

• Shipbuilding division revenue up 11% quarter-over-quarter and 19% year-over-year; naval ship segment revenue up 6.8% quarter-over-quarter and 32.7% year-over-year.

Segment performance

• Shipbuilding operating profit up 26% quarter-over-quarter and 74% year-over-year; margin at 18.8%.

• Shipbuilding sales up 9.2% QoQ and 74.7% YoY, with operating profit up 19.4% QoQ and 152.4% YoY.

• Offshore plant revenue declined 18% quarter-over-quarter and 52% year-over-year due to project ramp-ups.

• Offshore plant sales declined 17.6% QoQ but rose 53.3% YoY; operating profit down 30.6% QoQ, up 63.3% YoY.

• Engine and machinery operating profit up 23% quarter-over-quarter and 34% year-over-year, driven by HiMSEN engine sales.