According to South Korean media reports, the earnings of South Korea’s three major shipbuilders—HD Korea Shipbuilding & Offshore Engineering (HD KSOE), Hanwha Ocean, and Samsung Heavy Industries—are expected to see significant growth in the first quarter of 2026.
South Korean financial institutions forecast that in the first quarter of 2026, the combined revenue of HD KSOE, Hanwha Ocean, and Samsung Heavy Industries is expected to reach 14.0996 trillion won (approximately $94.69 billion), with an operating profit of 1.9221 trillion won (approximately $12.91 billion), representing year-over-year increases of 13.62% and 54.9%, respectively. Specifically:
HD KSOE is projected to report revenue of 7.7866 trillion won and operating profit of 1.1902 trillion won (approximately $799 million), representing year-over-year increases of 14.99% and 38.53%, respectively;
Hanwha Ocean is projected to report revenue of 3.302 trillion won and operating profit of 383.3 billion won (approximately $257 million), representing year-over-year increases of 5.06% and 48.22%, respectively;
Samsung Heavy Industries is projected to report revenue of 3.0110 trillion won and operating profit of 348.6 billion won (approximately $234 million), representing year-over-year increases of 20.71% and 183.24%, respectively.
Industry analysts in South Korea attribute the improved performance of the country’s three major shipbuilders to an enhancement in the quality of their order portfolios. At this stage, Korean shipbuilders no longer prioritize securing orders through “low-price bidding,” but have instead shifted their focus to high-value vessel types—such as liquefied natural gas (LNG) carriers, very large crude carriers (VLCCs), and container ships—with LNG carriers being regarded as the quintessential example of a vessel type that combines both advanced technical sophistication and high profitability.
In terms of new ship orders, during the first quarter of 2026, HD KSOE secured a total of over 40 new ship orders worth nearly $6 billion, bringing its cumulative order backlog to over $253.1 billion; as of March 25, Hanwha Ocean had secured 11 new ship orders worth $2.32 billion; and as of March 23, Samsung Heavy Industries had secured 14 new ship orders worth $2.9 billion. The main vessel types secured include LNG carriers, LPG/ammonia carriers, VLCCs, and container ships.
According to reports, as previously secured low-margin orders are gradually delivered, South Korean shipbuilders are now fully focused on constructing high-profit vessel types, leading to a subsequent rise in profit margins. Concurrently, global newbuilding prices remain robust; Clarkson’s latest Newbuilding Price Index stands at 182.08, holding steady above the critical threshold of 180—a benchmark signifying a boom in the shipbuilding industry. Driven by global environmental regulations and energy transition trends, orders for LNG-related projects are expected to continue flowing in, and demand is projected to remain solid over the medium to long term.
The South Korean shipbuilding industry forecasts that the value of new ship orders for South Korean shipyards will reach approximately $38.8 billion in 2026, a 10% increase from the previous year, driven primarily by the LNG carrier and tanker markets. Currently, the delivery schedules for the order backlogs of South Korea’s three major shipbuilders extend through 2029, and the shortage of drydocks is also a key factor driving up ship prices.