HD Hyundai Marine Engine (071970) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was KRW 182.3 billion, up 24% year-over-year, driven by increased demand for marine engines and crankshafts.

• Operating income reached KRW 27.7 billion, with net income at KRW 30.4 billion for the period.

• The company completed a major ownership change, with HD Korea Shipbuilding & Offshore Engineering acquiring a 35.05% stake and becoming the largest shareholder as of July 2024.

• The company changed its name to HD Hyundai Marine Engine Co., Ltd. and was integrated into the HD Hyundai group.

Financial highlights

• Revenue: KRW 182.3 billion (up 24% YoY); Operating income: KRW 27.7 billion; Net income: KRW 30.4 billion.

• Gross margin improved, with gross profit at KRW 40.96 billion.

• Cash and cash equivalents increased to KRW 130.9 billion as of June 30, 2025.

• No outstanding borrowings; net debt to equity ratio is negative, indicating net cash position.

• Major capital increase through third-party allotment in July 2024, raising paid-in capital to KRW 84.8 billion.

Outlook and guidance

• The company expects continued growth in eco-friendly engine demand, supported by stricter environmental regulations and increased new ship orders.

• Ongoing investments in production facilities and R&D to enhance competitiveness in LNG/LPG dual-fuel engines.