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

Executive summary

• Q2 consolidated revenue rose 10% quarter-on-quarter and 20% year-over-year, driven by higher vessel prices, productivity gains, and favorable exchange rates.

• Operating profit surged 21% quarter-on-quarter and 73% year-over-year, with margin improving to 18.4%.

• Net income jumped 39.7% quarter-on-quarter and 256.6% year-over-year, reflecting strong operational performance and improved non-operating results.

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

Financial highlights

• 2Q26 revenue: ₩89,270 billion; operating income: ₩16,451 billion; net income: ₩15,942 billion.

• Shipbuilding division revenue increased 11% quarter-on-quarter and 19% year-over-year.

• Naval ship segment revenue up 6.8% quarter-on-quarter and 32.7% year-over-year.

• Offshore plant revenue decreased 18% quarter-on-quarter and 52% year-over-year as project mix shifted.

• Non-operating gains included KRW 53.9 billion from a shipyard sale and KRW 380 billion in valuation gains.

Segment performance

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

• Offshore plant revenue down 17.6% quarter-on-quarter, but margin remained strong at 15.9%.

• Engine and machinery operating profit up 23% quarter-on-quarter and 34% year-over-year, margin at 24.2% on higher sales and favorable product mix.

• Green energy segment achieved record quarterly operating profit with a 27.4% margin.

• Samho division operating margin reached 22.5% on productivity gains.