Samsung Heavy Industries (010140) investor relations material

Financial performance and business status

• Revenue in 2025 reached KRW 10.7T, up 8% YoY, with operating profit at KRW 862B and OP margin improving to 8.1%.

• 4Q25 revenue was KRW 2.8T, up 8% QoQ, with OP margin rising to 10.4% due to higher productivity and fixed cost absorption.

• Pretax income turned positive in 2025, reaching KRW 650B, and net income surged to KRW 535B.

• New orders in 2025 totaled US$7.9B, with a backlog of US$28.6B covering three years of production.

• Financial status improved with total assets at KRW 14.9T and debt ratio reduced to 265% by end-2025.

Market outlook

• 2026 revenue is projected at KRW 12.8T, with a new order target of US$13.9B, driven by increased commercial vessel and offshore facility sales.

• LNG carrier orders are expected to rebound in 2026, supported by global LNG export projects and replacement demand.

• Eco-friendly replacement demand for containerships will accelerate due to environmental regulations and port fees on Chinese-built vessels.

• Tanker replacement demand remains high, with 44% of the fleet over 15 years old.

• Offshore FLNG projects are expected to expand, leveraging a strong track record and pipeline.

Eco-friendly technologies and innovation

• Regulatory tightening by IMO is driving demand for green and energy-efficient vessels, with new carbon tax and efficiency standards.

• Advanced LNG technology includes next-generation LNGCs, energy-saving devices, and lifecycle GHG management.

• Decarbonization initiatives feature waste heat recovery, CO2 capture, optimized ship shapes, and commercialization of LCO2 carriers.

• Focus on ammonia and nuclear-powered vessels, with pilot facilities and collaborations for alternative fuel technologies.

• Smart ship and autonomous vessel systems are advancing, enabling remote operation, AI-based diagnostics, and cost-efficient operations.