HD Korea Shipbuilding & Offshore Engineering Co., Ltd.’s Q3 operating profit hits 1.4 trillion won, driven by 60% gains at HD Hyundai Heavy Industries and Samho

[Financial News] HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HDKSOE), the intermediate holding company for the shipbuilding division of HD Hyundai Group, posted operating profit of 1.4472 trillion won in the third quarter. The result was driven by operating profit at HD Hyundai Heavy Industries and HD Hyundai Samho Co., Ltd., which rose 60% year on year. This came despite some declines in revenue from core businesses, supported by strong results from high-priced orders, engines and offshore plants.
On the 28th, HDKSOE released preliminary third-quarter results showing revenue of 8.2862 trillion won and operating profit of 1.4472 trillion won. Revenue rose 9.3% and operating profit 37.3% from the same period a year earlier. The main companies that boosted operating profit were HD Hyundai Heavy Industries and HD Hyundai Samho Co., Ltd. Their operating profits were 899.2 billion won and 479 billion won, respectively, up 61% and 56% year on year.
Notably, the company posted solid results despite fewer operating days in the shipbuilding industry due to seasonal factors such as holidays, as well as the adverse impact of a stronger won. The improvement is attributed to higher productivity in its core shipbuilding business and a strategy of selectively pursuing high-priced orders, alongside strong results in offshore plants and engines.
First, HD Hyundai Heavy Industries improved profitability by selectively winning orders for high-value-added vessels as ship prices also rose. Its merchant-vessel business recorded revenue of 4.1418 trillion won and operating profit of 607.7 billion won. Compared with the same period a year earlier, revenue rose 54%, while operating profit surged 75%.
The offshore plant business also contributed to strong results, posting an operating margin in the 30% range. Revenue was 379.9 billion won and operating profit was 126.5 billion won. Revenue increased by about 100 billion won year on year, while operating profit climbed sharply from 500 million won to the 100-billion-won range.
Revenue was further boosted as the company’s in-house-developed HiMSEN marine generator engines gained recognition as land-based power-generation engines for AI data centers. A prime example is a 1.6-trillion-won contract to supply HiMSEN engines for U.S. data centers. The business posted revenue of 951.1 billion won and operating profit of 229.9 billion won. HD Hyundai Marine Engine, which manufactures marine engines and key equipment, recorded revenue of 211.4 billion won and operating profit of 60.3 billion won, doubling its revenue and tripling its operating profit year on year.
HD HYUNDAI ENERGY SOLUTIONS CO., LTD., whose main business is manufacturing and selling solar cells and modules, recorded revenue of 150.8 billion won and operating profit of 20.4 billion won.
HDKSOE’s growth is expected to continue into the fourth quarter and beyond, with orders continuing to roll in as its backlog has reached the 100-trillion-won range. South Korea’s largest container shipping company, PIL, ordered eight 13,000-TEU container ships worth 1.9196 trillion won on the 20th. On the 14th, it also agreed with a Middle Eastern shipping company to build four very large gas carriers (VLGCs) for 625.8 billion won.
The engine business is also expected to continue growing. This year, engine orders for HD Hyundai Heavy Industries and HD Hyundai Marine Engine have topped 6 trillion won. HD Hyundai Heavy Industries initially set a target of around 3.6 trillion won, but is expected to exceed twice that amount within the year. The company is also investing 833.6 billion won to build a new HiMSEN engine production facility in Onsan-eup, Ulju County, Ulsan. The facility is scheduled to begin operations in May 2028, and the scale of the engine business is expected to expand year by year.


[email protected] Kim Yun-ho Reporter