HD Korea Shipbuilding & Offshore Engineering (009540) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales were KRW 8,927.0bn, up 9.7% QoQ and 20.2% YoY; operating profit was KRW 1,645.1bn, up 21.3% QoQ and 72.5% YoY, with no one-off items affecting results.

• Net income reached KRW 1,594.2bn, up 39.7% QoQ and 256.6% YoY; net income attributable to controlling interests was KRW 1,287.4bn.

• H1 order intake totaled $16.38bn, reaching 96.2% of the annual target, with emphasis on high-value gas carriers.

Financial highlights

• Gross profit was KRW 2,083.7bn, up 19.4% QoQ and 60.0% YoY; operating margin was 18.4%, up 1.7 percentage points QoQ and 5.6 points YoY.

• EBIT was KRW 2,162.4bn, versus KRW 1,568.1bn in Q1 2026 and KRW 545.9bn in Q2 2025.

• Non-operating items included KRW 380.4bn gain on financial instruments and a KRW 53.9bn impairment loss reversal; FX-related items included KRW 186.6bn FX profit and loss, KRW 774.2bn derivative losses and KRW 688.3bn firm-contract valuation gains.

• H1 2026 consolidated revenue was KRW 17,067.9bn and operating income was KRW 3,001.1bn.

Segment performance

• Shipbuilding sales were KRW 7,451.0bn and operating profit KRW 1,398.6bn; profit rose 26% QoQ and 74% YoY, with an 18.8% margin supported by productivity gains and high-value vessel revenue recognition.

• Offshore Plant sales were KRW 377.1bn, down 17.6% QoQ, and operating profit was KRW 60.1bn, down 30.6% QoQ amid differing construction progress rates.

• Engine & Machinery sales were KRW 1,109.9bn, up 6.0% QoQ; operating profit reached KRW 268.6bn, up 23.2% QoQ on sales growth and a sustained high DF sales mix.

• Naval ship operating profit fell 48% QoQ and 33% YoY due to product mix; naval revenue rose 6.8% QoQ and 32.7% YoY.

• HD Hyundai Energy Solution posted record quarterly operating profit of KRW 36.1bn, supported by higher domestic ASP and sustained US demand ahead of tax incentive reductions.