Thanks to increased revenue from shipbuilding operations and a significant improvement in profit structure, South Korea’s central shipbuilder HJ Heavy Industries saw its 2025 operating profit surge more than eightfold year-on-year.
Recently, HJ Heavy Industries released its 2025 performance data. During the reporting period, the company achieved operating revenue of KRW 1.9997 trillion (approximately $136.2 million), representing a 6% year-on-year increase. Operating profit reached KRW 67 billion (approximately $45.63 million), surging 824.8% year-on-year—eight times the 2024 operating profit of KRW 7.2 billion. Net profit stood at KRW 51.4 billion, marking an 884.6% increase year-on-year.
This marks HJ Heavy Industries’ first time surpassing the KRW 50 billion threshold in five years since 2020. The company’s performance growth stems from increased commercial vessel orders centered on eco-friendly, high-value-added vessels, alongside its strategy to diversify operations in traditional specialty vessel sectors gradually yielding tangible results.
As one of HJ Heavy Industries’ core businesses, its shipbuilding division saw particularly significant improvements in both revenue and profit structure by 2025. Having fallen to just 18% of total revenue in 2022, the division achieved rapid recovery as the shipbuilding industry gradually picked up, contributing nearly 50% of revenue by 2025. Another core business—the engineering and construction division—also demonstrated robust performance, achieving an order value of KRW 2.5 trillion in 2025, exceeding its annual target.
Regarding its profit structure, HJ Heavy Industries stated that by implementing an order selection strategy focused on environmentally friendly, high-value-added vessels, the company has effectively enhanced its profitability. With the International Maritime Organization (IMO) tightening carbon emission regulations, orders for eco-friendly vessels have surged. HJ Heavy Industries is focusing on constructing environmentally advanced vessels such as methanol-powered container ships, LNG-powered container ships, and LNG bunkering vessels. This strategic positioning is seen as a key driver of its performance growth.
In the defense sector, HJ Heavy Industries secured orders for all 32 new high-speed patrol boats (PKX-B) and 8 air-cushion landing craft (LSF-II) procured by the Republic of Korea Navy. Additionally, the company secured orders late last year for 4 high-speed patrol boats worth KRW 380 billion and one 1,900-ton multi-purpose chemical pollution control vessel for the Korea Coast Guard, securing its shipbuilding workload for at least the next three years.
By 2026, HJ Heavy Industries has secured certification for the Maintenance Service Request Agreement (MSRA) from the U.S. Navy Supply System Command (NAVSUP), qualifying it to bid on the U.S. Navy’s maintenance, repair, and overhaul (MRO) market for naval vessels. This market is projected to average 20 trillion won annually over the next five years.
MSRA is a ship maintenance qualification granted by NAVSUP following formal verification of a private shipyard’s repair capabilities. The assessment scope encompasses the shipyard’s repair capacity, financial stability, quality and safety management systems, security systems and supply chain management. Contracted shipyards certified with MSRA are eligible to bid on MRO projects for all U.S. Navy mainline vessels, including logistics support ships, combat ships, and frigates. The certification is valid for five years.
An official from HJ Heavy Industries stated: “With the growing demand for environmentally friendly vessels driving sustained industry recovery, coupled with the tangible outcomes of the U.S. Navy’s ship MRO projects, we anticipate the upward performance trend will continue through 2026. Leveraging our differentiated technological competitiveness, the company will focus on enhancing profitability and securing future competitiveness.”