HD Hyundai Marine Engine (A071970) 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, both showing significant improvement from the previous year.

• The company completed a major ownership change, with HD Korea Shipbuilding & Offshore Engineering becoming the largest shareholder in July 2024.

• The sale of the Naedong plant in January 2025 improved liquidity and financial structure.

Financial highlights

• Q1 2025 revenue: KRW 83.0 billion (Q1 2024: KRW 61.4 billion); operating income: KRW 10.3 billion (Q1 2024: KRW 6.2 billion).

• Net income: KRW 13.9 billion (Q1 2024: KRW 6.7 billion); basic EPS: KRW 409 (Q1 2024: KRW 240).

• Gross margin improved to 19.7% from 18.2% year-over-year.

• Cash and cash equivalents at quarter-end: KRW 89.4 billion, up from KRW 59.8 billion at the end of 2024.

• No outstanding bank borrowings as of Q1 2025.

Outlook and guidance

• The company expects continued growth in eco-friendly engine demand due to tightening IMO regulations and aging fleets.

• Market remains favorable for shipbuilders, with newbuilding prices stable and order volumes rising, especially for container and LNG carriers.

• Ongoing investments in production capacity and R&D to support green engine technology and productivity improvements.