HMM (011200) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q 2026 was KRW 2,719bn, down 4.8% year-over-year, with operating income at KRW 269bn, a 56.2% decline from 1Q 2025.

• Net profit for the quarter was KRW 354bn, a 52.2% decrease year-over-year.

• Operating margin dropped to 9.9% from 21.5% in the prior year quarter.

Financial highlights

• Cost of goods sold (COGS) increased by 10.8% year-over-year, raising the COGS to sales ratio to 85.7%.

• Charterage costs rose 15.9% year-over-year due to higher slot costs.

• Assets grew to KRW 36,090bn, liabilities to KRW 8,309bn, and equity to KRW 27,781bn as of March 31, 2026.

• Total borrowings stood at KRW 5,723bn at quarter-end.

Outlook and guidance

• Container market faces ongoing uncertainty from U.S. tariff policies and U.S.-China decoupling, with demand growth varying by route.

• Dry bulk market expected to remain strong but volatile due to Middle East risks; tanker market to normalize after a temporary spike.

• Strategies include operational efficiency improvements, fuel surcharges, and long-term contracts for bulk.