HD Korea Shipbuilding & Offshore Engineering (009540) Q1 2025 earnings summary

Executive summary

• 1Q25 sales reached KRW 6,771.7bn, down 5.4% QoQ but up 22.8% YoY, mainly due to fewer working days.

• Operating profit surged 72.1% QoQ and 436.3% YoY to KRW 859.2bn, driven by FX tailwinds, productivity gains, and improved product mix in shipbuilding and engine divisions.

• Net income was KRW 611.6bn, down 15.9% QoQ but up 216.4% YoY.

Financial highlights

• Gross profit rose 40.1% QoQ and 232.0% YoY to KRW 1,161.9bn.

• Operating margin improved to 12.7%, up 5.7pp QoQ and 9.8pp YoY.

• Non-operating income was negative at KRW -60.0bn, impacting net income.

• Cash & cash equivalents increased to KRW 5,600.4bn.

Outlook and guidance

• Management expects continued benefit from favorable FX rates and productivity enhancements.

• Cautions issued regarding predictive information due to market uncertainties.