Samsung Heavy Industries (010140) Investor presentation summary

Financial performance and outlook

• Q4 2025 revenue rose 8% QoQ to ₩2.84 trillion, with operating profit up 24% to ₩296.2 billion and margin improving to 10.4%.

• Full-year 2025 revenue reached ₩10.7 trillion, up 8% YoY, with operating profit of ₩862.2 billion, exceeding guidance by 37%.

• 2026 revenue is projected at ₩12.8 trillion, a 20% increase, driven by ramp-up in S-Max production and FLNG projects.

• 2026 order target is $13.9 billion, up from $7.9 billion in 2025, with strong LNG carrier and FLNG demand.

• Q1–Q3 2026 new orders totaled $3.1 billion, with backlog at $29.9 billion as of March.

Market trends and demand outlook

• LNG carrier orders expected to rebound in 2026, supported by new US LNG export project approvals.

• Container ship demand driven by environmental regulations and preference shift toward Korean-built vessels due to US tariffs on Chinese ships.

• Tanker replacement demand remains high, with 45% of the global fleet over 15 years old.

• FLNG project orders expanding, leveraging successful delivery of large-scale units and ongoing negotiations for new projects.

Technology and regulatory response

• Ongoing development of eco-friendly and digital ship technologies to meet tightening IMO greenhouse gas regulations.

• Advancements in LNG carrier technology, including lifecycle GHG management and energy-saving devices.

• Commercialization of waste heat recovery, CO2 capture, and optimized hull designs to reduce emissions and improve efficiency.

• Active R&D in alternative fuels, notably ammonia and nuclear propulsion, with multiple collaborative projects underway.

• Progress in smart ship and autonomous navigation systems, including successful sea trials and commercialization of digital solutions.