HD Hyundai Heavy Industries (329180) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated results include the full-period impact of the Mipo merger, broadening the operational base and improving performance metrics, especially in the mid-sized vessel and engine divisions.

• Revenue increased 20.2% year-over-year and was nearly flat sequentially, while operating profit surged 330.6% quarter-over-quarter and 57.8% year-over-year.

• Net income attributable to controlling interest surged 58.0% quarter-over-quarter and 172.3% year-over-year.

• No one-off items impacted consolidated results, with earnings improvement attributed to operational factors and merger synergies.

Financial highlights

• 1Q26 sales reached KRW 5,916.3bn, up 13.9% quarter-over-quarter and 54.8% year-over-year.

• Operating profit was KRW 905.4bn, up 57.5% quarter-over-quarter and 108.8% year-over-year; OPM improved to 15.3%.

• Consolidated revenue up 20.2% year-over-year, down 0.1% quarter-over-quarter.

• All major subsidiaries maintain a net cash position; consolidated net cash at KRW 8.7 trillion.

• Non-operating income included a KRW 290.0bn FX gain and a KRW 134.0bn derivative loss.

Outlook and guidance

• Order intake in Q1 reached $6.39 billion, achieving 37.5% of the full-year target.

• Full-year new order target set at $17.03 billion across subsidiaries.

• Market outlook remains positive, with robust demand for LNG carriers, VLGCs, and container ships, but geopolitical risks and economic slowdown are being closely monitored.

• Medium to long-term demand drivers include environmental regulations, energy transition, and fleet replacement.

• Management notes that forecasts are subject to change due to market environment and strategic shifts.