HD Hyundai Marine Engine (071970) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 83.0 billion, up 35% year-over-year, driven by increased demand for marine engines and crankshafts.

• Operating income reached KRW 10.3 billion, with net income at KRW 13.9 billion, and basic EPS of KRW 409.

• Gross margin improved to 19.7% from 17.1% in the prior year.

• Cash and cash equivalents increased to KRW 89.4 billion, reflecting strong operating and investing cash flows.

Financial highlights

• Revenue: KRW 83.0 billion (Q1 2025), up from KRW 61.4 billion (Q1 2024).

• Operating income: KRW 10.3 billion (Q1 2025) vs. KRW 6.2 billion (Q1 2024).

• Net income: KRW 13.9 billion (Q1 2025) vs. KRW 6.7 billion (Q1 2024).

• Cash flow from operations: KRW 16.5 billion (Q1 2025) vs. KRW 2.0 billion (Q1 2024).

• Total assets: KRW 525.7 billion; equity: KRW 326.8 billion.

Outlook and guidance

• Continued strong demand for eco-friendly dual-fuel engines (LNG, LPG) due to tightening environmental regulations.

• Order backlog remains robust, with significant contracts extending into 2028.

• Market expects ongoing volatility in shipping rates but sustained demand for new, environmentally compliant vessels.