HD Hyundai Marine Solution (443060) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 485.6 billion, up 26.8% year-over-year, with net income of KRW 63.3 billion, and operating income up 61.2% year-over-year.

• Operating margin expanded to 17.1%, a 3.7 percentage point increase year-over-year.

• The company completed its IPO on the Korea Exchange in May 2024 and maintains a strong market position in after-service, eco-friendly retrofits, and digital solutions.

Financial highlights

• Q1 2025 revenue: KRW 485.6 billion (+26.8% YoY, +4.8% QoQ); net income: KRW 63.3 billion (+42.9% YoY, -7.5% QoQ).

• Operating income: KRW 83.0 billion (+61.2% YoY, +25.9% QoQ); margin at 17.1%.

• Gross margin: 22.2% (KRW 108.0 billion gross profit on KRW 485.6 billion sales).

• Basic and diluted EPS: KRW 1,412 (Q1 2024: KRW 1,108).

• Cash and equivalents at quarter-end: KRW 455.8 billion.

Outlook and guidance

• KOSPI 200 index inclusion expected in June, potentially attracting passive inflows.

• Expanding eco-friendly fuel bunkering and digital platform services, focusing on AI-driven carbon reduction.

• Powerplant sales expected to recover in 2H25 as deliveries ramp up.

• Demand for large-scale dual-fuel conversions and digital solutions anticipated to build post-MEPC 83 and with new IMO rules.

• Anticipates continued growth in eco-friendly retrofits and digital solutions, driven by tightening global maritime regulations.