HD Hyundai Marine Solution (443060) Q1 2026 earnings summary

Executive summary

• Achieved all-time high revenue of KRW 574.6 billion in 1Q26, up 18.3% year-over-year, driven by higher energy prices and strong aftermarket momentum.

• Operating profit increased 12.5% year-over-year and 3.2% sequentially, with gross margin improving to 21.1% from 20.2% in the prior year.

• Net income rose 55.0% year-over-year and 33.5% sequentially to KRW 98.1 billion, reflecting robust operational and non-operating performance.

• Maintained a strong cash position, with cash and cash equivalents at KRW 607.1 billion as of March 31, 2026.

Financial highlights

• Revenue reached KRW 574.6 billion, up from KRW 485.6 billion in 1Q25 and KRW 516.2 billion in 4Q25.

• Operating income was KRW 93.4 billion, with an operating margin of 16.3%.

• Net income totaled KRW 98.1 billion, up from KRW 63.3 billion in 1Q25; basic and diluted EPS: KRW 2,189 (vs. KRW 1,412 in Q1 2025).

• Gross profit was KRW 121.2 billion, with a gross margin of 21.1%.

• Non-operating profit surged to KRW 26.1 billion, mainly from foreign currency gains.

Outlook and guidance

• AM segment growth expected to continue, supported by expanding installed base and LTSA backlog.

• Retrofit backlog and digital solution orders indicate favorable market conditions for 2H26.

• Land-based power contracts and new logistics hub to enhance future revenue and competitiveness.

• Ongoing focus on expanding digital and eco-friendly solutions, with new product launches and platform-based services.

• Targeting a dividend payout ratio of 50–70% of annual net income over the next three years.