Recently, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a subsidiary of HD Hyundai, released its financial report for the first quarter of 2026. During the reporting period, HD KSOE achieved operating revenue of 8.1409 trillion won (approximately US$5.438 billion), a year-on-year increase of 20.2%; and operating profit of 1.356 trillion won (approximately US$910 million), a year-on-year increase of 58%.
HD KSOE stated that despite the reduced number of operating days due to seasonal factors, the revenue and profitability of all its business units improved thanks to the increased proportion of environmentally friendly and high-value-added vessels, improved production efficiency, and improved profitability in the offshore engineering business.
By subsidiary, HD Hyundai Heavy Industries achieved operating revenue of 5.9163 trillion won (approximately US$3.952 billion), a year-on-year increase of 54.8%; and operating profit of 905.4 billion won (approximately US$605 million), a year-on-year increase of 108.8%.
This is the first quarterly financial report released after the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo. Before the merger, HD Hyundai Heavy Industries’ operating revenue was 3.8225 trillion won and operating profit was 433.7 billion won in the same period last year.
The South Korean securities industry predicts that HD Hyundai Heavy Industries’ total operating revenue in 2026 will be between 23 trillion and 26 trillion won, with operating profit between 3 trillion and 4 trillion won. Based on the merger effect and the increased proportion of high-value-added ship types, HD Hyundai Heavy Industries’ profitability will further improve.
HD Hyundai Samho achieved operating revenue of 2.1245 trillion won (approximately US$1.419 billion), an increase of 8% year-on-year; and operating profit of 395.2 billion won (approximately US$264 million), an increase of 8% year-on-year.
HD Hyundai Marine Engine achieved operating revenue of 133.5 billion won, a year-on-year increase of 60.8%; and operating profit of 32.6 billion won, a year-on-year increase of 216.5%. This performance was attributed to rising engine prices, increased deliveries, and strong sales of parts.
HD Hyundai Energy Solutions reported revenue of 159.9 billion won, an increase of 87.6% year-over-year; driven by higher domestic and international module sales and rising prices, the company posted an operating profit of 29 billion won, marking a turnaround from a loss in the previous year.
By business segment, HD KSOE’s shipbuilding division achieved operating revenue of 6.6963 trillion won (approximately US$4.473 billion) and operating profit of 1.1107 trillion won (approximately US$742 million), representing year-on-year increases of 14.6% and 42.1%, respectively, driven by improved production efficiency and optimized product structure.
The Engine & Machinery Division and the Offshore Division posted operating profits of 218.1 billion won and 86.6 billion won, respectively, representing year-over-year increases of 41.3% and 1,212.1%.
HD KSOE stated that the current new shipbuilding market is showing a positive trend, with orders for high-value-added vessel types such as LNG carriers, LPG carriers, and tankers continuing to pour in. The growth in LNG projects driven by the United States and the increasing global energy transportation demand are further boosting market expectations for new orders. As demand expands from marine engines to data center power generation, the marine engine business is gradually becoming a medium- to long-term growth engine.