HD Hyundai Marine Engine (071970) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was KRW 133.5 billion, up 61% year-over-year, driven by increased demand for ship engines and crankshafts.

• Operating income reached KRW 32.6 billion, with net income at KRW 28.1 billion, and basic EPS of KRW 830.

• The company maintains a strong cash position, with cash and cash equivalents at KRW 195.7 billion at quarter-end.

• Major business segments are ship engines (81.8% of sales) and engine parts/services (18.2%).

Financial highlights

• Gross profit margin for Q1 2026 was 30.5%, with cost of sales at KRW 92.8 billion.

• Operating margin improved to 24.4% from 12.4% in the prior year.

• Cash flow from operations was KRW 34.8 billion; cash flow from investing was positive due to asset sales.

• Total assets increased to KRW 873.4 billion, and equity to KRW 499.7 billion.

Outlook and guidance

• Continued investment in eco-friendly engine technology and production capacity to meet rising global demand.

• Anticipates further growth from new ship orders and stricter environmental regulations.

• Ongoing R&D in gas turbines and high-temperature aerospace components.