According to South Korea’s Chosun Ilbo, South Korea’s three major shipbuilders—HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries—are projected to enter a phase of significant performance growth in 2026, with operating profits expected to increase by over 45% year-on-year. Currently, the three shipbuilders have order backlogs extending three years into the future. As high-value-added vessels secured through their selective order strategy begin delivery in 2026, their operating profit margins are projected to reach mid-to-high levels of 15% to 20% that year.
According to data from South Korean financial information provider FnGuide, as of January 11, 2026, the market consensus forecast for the combined operating profit of the three major shipbuilders in 2026 stands at 66.091 trillion won (approximately $44.843 billion), representing a 44.9% increase from the 2025 estimate of 45.613 trillion won (approximately $30.948 billion).
Merger synergies combined with market dividends are expected to significantly boost HD Hyundai Heavy Industries’ operating profit.
On December 1, 2025, HD Hyundai Heavy Industries and HD Hyundai Mipo completed their merger. Following this capacity expansion, HD Hyundai Heavy Industries’ operating profit is projected to surpass the 30 trillion won mark in 2026. Benefiting from synergies following the merger of the two shipyards and favorable market conditions, this will mark the first time in six years since the shipbuilding boom of 2010 that HD Hyundai Heavy Industries achieves annual operating profit exceeding 3 trillion won.
Based on the consensus forecast of the South Korean securities industry, HD Hyundai Heavy Industries is projected to achieve operating revenue of 21.6079 trillion won in 2026, representing a year-on-year increase of approximately 16%. Operating profit is expected to reach 3.3891 trillion won (approximately $23.00 billion), marking a year-on-year growth of about 43%, with an operating profit margin projected to reach 15%.
Under stronger and more optimistic market conditions, Samsung Securities and Korea Investment & Securities forecast HD Hyundai Heavy Industries’ operating profit at 3.543 trillion won and 3.5091 trillion won, respectively, representing year-on-year growth of approximately 69% and 65%.
A Samsung Securities official stated: “HD Hyundai Heavy Industries is poised to become the most profitable shipyard among major shipbuilders in the current cycle. Beyond its engine business bolstering profitability, the company’s competitiveness in eco-friendly vessels and its rapidly growing marine defense operations—which have recently garnered significant market attention—will also drive profit growth for HD Hyundai Heavy Industries.”
Samsung Heavy Industries and Hanwha Ocean are expected to surpass 2 trillion won in operating profit.
As one of South Korea’s top three shipbuilders, Samsung Heavy Industries is projected to see a strong upward trend in its 2026 performance. The South Korean market’s consensus forecast for Samsung Heavy Industries’ 2026 operating profit stands at 1.4424 trillion won (approximately $979 million), representing a 66% year-on-year increase. Projected operating revenue is 12.4481 trillion won (approximately $8.45 billion), with an expected operating profit margin of 11.6%.
Other analysts predict that, driven by both offshore engineering equipment and high-value-added vessels, Samsung Heavy Industries’ actual operating profit may exceed market expectations by more than 30%. Korea Investment & Securities predicts that Samsung Heavy Industries’ operating profit will reach 1.7006 trillion won, an increase of 89% year-on-year, with a profit margin approaching 14%.
A representative from Korea Investment & Securities stated: “In 2026, Samsung Heavy Industries will achieve 3 trillion won in operating revenue solely from FLNG orders for the first time. With container ship operating profit margins reaching 14.9% and the commencement of deliveries for high-value LNG carrier orders secured in 2023, Samsung Heavy Industries will significantly expand its profit scale.”
For Hanwha Ocean, the South Korean industry also anticipates that the shipbuilder will enter a phase of substantial profitability by 2026. According to projections from the Korean securities industry, Hanwha Ocean’s operating profit in 2026 is expected to reach 1.7776 trillion won (approximately $1.206 billion), representing a 35% year-on-year increase with a profit margin of 12.6%. Compared to its 2024 profit scale of 237.9 billion won, profits in 2026 will grow by 7.5 times.
Regarding this, a representative from Korea Investment & Securities explained: “Although Hanwha Ocean’s offshore projects will see delayed recognition, the high-margin specialty vessels (defense) sector will drive overall performance. Revenue from specialized vessels is projected to grow by 36% to 1.8 trillion won, leading to rapid profit growth.”
Three major shipbuilders enter delivery phase for high-value-added orders
Reports indicate that the market’s positive outlook on the earnings prospects of HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries stems from the order selection strategies adopted by these three shipbuilders. As shipyard capacity approaches saturation, the major shipbuilders have begun focusing on high-value-added vessel orders. A South Korean industry insider stated: “2025 will be a year to solidify the foundation for profitability, while 2026 will mark a turning point—as high-value-added orders like LNG carriers enter a concentrated delivery cycle, the quality of shipbuilders’ earnings will undergo a fundamental transformation.”
Based on their 2025 order performance, the three major shipbuilders are planning to raise their annual order targets for 2026, focusing on enhancing profitability. In 2025, HD Hyundai Heavy Industries secured new ship orders totaling 50 vessels (48 merchant vessels and 2 special-purpose ships) worth $8.93 billion, achieving 91.6% of its annual target and marking an increase compared to 2024 (38 vessels / $7.67 billion).
Building on this foundation, HD Hyundai Heavy Industries has set its annual new ship order target for 2026 at $17.745 billion, with the shipbuilding, offshore engineering, and equipment sectors contributing $14.486 billion and $3.259 billion respectively. This represents an 82% increase year-on-year (from $9.75 billion, excluding engine and machinery businesses), reflecting the synergistic effects of the merger with HD Hyundai Mipo and favorable market conditions.
Hanwha Ocean has not disclosed its order targets, but its 2025 order value reached $9.83 billion, marking a 9.5% increase from 2024 ($8.98 billion). Samsung Heavy Industries secured a total of 43 new ship orders worth $7.9 billion in 2025, surpassing its 2024 performance (36 vessels/ $7.3 billion) and achieving 80.6% of its annual order target of $9.8 billion.
Regarding the positive performance outlook for South Korea’s three major shipbuilders, industry analysts note: “The improvement in shipbuilders’ earnings is not a temporary phenomenon but a structural shift. By 2026, the combined effect of increased production volume and rising ship prices is expected to meet or even exceed market expectations for profit growth.”