HD Korea Shipbuilding & Offshore Engineering (009540) Q3 2026 earnings summary

Executive summary

• Q3 sales were KRW 8,286.2bn, up 9.3% YoY and down 7.2% QoQ; operating profit was KRW 1,447.2bn, up 37.3% YoY and down 12.0% QoQ.

• Net income was KRW 777.0bn, down 11.4% YoY and 51.3% QoQ; controlling-interest net income was KRW 623.5bn.

• Shipbuilding order intake reached 176 vessels worth $19.1bn through Q3, exceeding the annual target amid selective, high-value order-taking.

Financial highlights

• Gross profit was KRW 1,848.7bn, up 32.3% YoY and down 11.3% QoQ; operating margin was 17.5%, up 3.6 percentage points YoY and down 0.9 points QoQ.

• EBIT was KRW 1,083.5bn, versus KRW 1,139.1bn in 3Q25 and KRW 2,162.4bn in 2Q26; income before taxes was KRW 1,083.5bn and income taxes were KRW 306.5bn.

• Shipbuilding operating margin was 16.7%, slightly lower QoQ but continuing to improve YoY.

Segment performance

• Shipbuilding sales were KRW 6,839.3bn, down 8.2% QoQ; operating profit was KRW 1,145.3bn, down 18.1% QoQ. Naval vessel profit rose 114% QoQ.

• Offshore Plant sales were KRW 379.8bn, up 0.7% QoQ; operating profit was KRW 126.4bn, including KRW 18bn from a project change order. Ruya progress supported revenue, while Trion neared completion.

• Engine & Machinery sales were KRW 1,201.2bn, up 9.1% QoQ; operating profit increased 8.0% to KRW 290.1bn, supported by sales growth and a high dual-fuel mix.

• HD Hyundai Marine Engine revenue surged 65% QoQ and operating profit increased 92%; its 28.5% margin was a record, supported by prices, Dual Fuel mix and deliveries.

• HD Hyundai Samho revenue held at the prior-quarter level and operating profit declined 10.3%; its operating margin was 20.2%.