HD Hyundai Heavy Industries (329180) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales rose 7.5% quarter-over-quarter and 13.8% year-over-year, driven by higher vessel prices, productivity gains, and favorable FX rates.

• Operating profit decreased 1.5% quarter-over-quarter but surged 108% year-over-year, with one-off incentive bonuses and the absence of prior quarter gains impacting results.

• Net income increased 13.3% quarter-over-quarter and 36.6% year-over-year, reflecting strong operational performance.

• All shipbuilding subsidiaries maintained a net cash position totaling KRW 6.2 trillion, reflecting strong financial health.

Financial highlights

• 4Q25 sales: 8,151.6 bn KRW (+7.5% QoQ, +13.8% YoY); FY25 sales: 29,933.2 bn KRW (+17.2% YoY).

• 4Q25 operating profit: 1,037.9 bn KRW (-1.5% QoQ, +108% YoY); FY25 operating profit: 3,904.5 bn KRW (+172.3% YoY).

• 4Q25 net income: 993.0 bn KRW (+13.3% QoQ, +36.6% YoY); FY25 net income: 2,928.4 bn KRW (+101.3% YoY).

• Positive FX impact contributed KRW 50 billion to operating profit in Q4.

• One-off incentive bonuses and gains recognized across divisions, slightly reducing operating profit.

Outlook and guidance

• Management expects continued growth in 2026, supported by higher vessel prices, productivity improvements, and stable performance in offshore and engine divisions.

• Shipbuilding order intake exceeded annual target by 16%, with $17.4 billion in new orders.

• New building prices expected to decline only gradually, supported by strong backlogs and environmental regulations.

• Offshore wind and SMR businesses targeted for growth, with first EPC contract in offshore wind expected in 2026.

• Forecasts are subject to market and operational uncertainties.