Samsung Heavy Industries (010140) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 reached 3.2 trillion KRW, up 11% sequentially and 20% year-over-year.

• Revenue for the first half of 2026 increased 18.5% year-over-year to KRW 6,133 billion, driven by strong shipbuilding and offshore performance.

• Operating profit rose to 325 billion KRW in Q2 2026, a 19% increase from the previous quarter and 59% year-over-year.

• Operating income for the half-year was KRW 598.1 billion, with net profit attributable to owners at KRW 325.9 billion.

• The company maintained a robust order backlog of KRW 350 trillion, with new orders in LNG carriers, offshore platforms, and high-value vessels.

Financial highlights

• Operating margin improved to 10.1% in Q2 2026, up from 9.4% in Q1 2026 and 7.6% in Q2 2025.

• Gross margin improved to 13.9% from 12.2% year-over-year.

• Cash and cash equivalents at period-end were KRW 807.4 billion, up from KRW 772.6 billion at the end of 2025.

• Revenue and operating profit have shown a steady upward trend since 2024, supported by higher ship prices.

• Decreased share of low-margin orders from before 2022, with a higher proportion of recent, more profitable contracts.

Outlook and guidance

• LNG carrier orders expected to remain strong due to global LNG demand and new export projects.

• The global shipbuilding market is expected to remain strong, especially for LNG carriers and offshore platforms, despite uncertainties in container ship demand.

• The company plans to focus on high-value-added vessels and digital/eco-friendly technologies.

• No specific quantitative guidance was provided, but management expects continued revenue and profit growth based on the robust order backlog.

• Container ship market faces short-term weakness but long-term demand for eco-friendly replacements is robust.