HD Hyundai’s Q3 operating profit rises 71% to 2.9 trillion won, led by shipbuilding and construction equipment

[Financial News] HD Hyundai’s third-quarter operating profit rose 71.5% year on year to 2.9197 trillion won. Higher earnings from high-priced ship orders in its core shipbuilding business led the increase, while ship engines gained attention as generators for AI data centers, providing an additional boost.
On the 28th, HD Hyundai announced preliminary third-quarter results of 22.08 trillion won in revenue and 2.9197 trillion won in operating profit. The figures were up 21.2% and 71.5%, respectively, from the same period a year earlier, thanks to solid profitability in its core shipbuilding and construction equipment businesses.
HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HDKSOE), the intermediate holding company for HD Hyundai’s shipbuilding division, reported third-quarter 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 contributors to the increase in 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 shipbuilding due to seasonal factors such as holidays and the adverse impact of a stronger won. The results are attributed to improved productivity in its core shipbuilding business and a successful strategy of selectively taking orders at higher prices, supported by strong performances in offshore plants and engines.
HD Hyundai Heavy Industries saw profitability improve as vessel prices rose alongside its selective pursuit of high-value-added ship orders. Its merchant-vessel business recorded revenue of 4.1418 trillion won and operating profit of 607.7 billion won. Revenue was up 54% year on year, while operating profit surged 75%.
The offshore plant business also contributed to the 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 rose by about 100 billion won year on year, while operating profit soared from 500 million won to the 100-billion-won range.
Sales got an additional boost as the shipboard HiMSEN engine gained attention as an engine for land-based power generation at AI data centers. A 1.6-trillion-won contract to supply HiMSEN engines for U.S. data centers is a notable example. Revenue was 951.1 billion won, with operating profit of 229.9 billion won.
HD Hyundai Marine Engine, which manufactures ship engines and key equipment, recorded revenue of 211.4 billion won and operating profit of 60.3 billion won—double and triple the year-earlier figures, respectively. HD Hyundai Marine Solution Co., Ltd., which handles engine maintenance and repair, posted revenue of 650.1 billion won, up 26.7% year on year, and operating profit of 95.7 billion won, up 2.2%, despite incurring costs related to its acquisition of Goltens, a global specialist in services for ship and land-based power-generation engines.
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.

HD Hyundai XiteSolution, the intermediate holding company for the construction equipment division, grew as the market for power-generation engines expanded, while its core construction equipment business remained steady. Third-quarter operating profit rose 39.8% year on year to 200.2 billion won. Revenue increased 6% to 2.1756 trillion won.
The contribution from the engine business is clear from the results of its main company, HD Construction Equipment Co., Ltd. Third-quarter operating profit was 157.7 billion won, of which the engine division accounted for 55.2 billion won. Given that engines make up 20% of revenue, this shows how profitable the business is.
In the energy division, HD Hyundai Oilbank managed operating profit of just 900.9 billion won on revenue of 10.0437 trillion won, as margins narrowed amid continued uncertainty in the Middle East. HD Hyundai Electric Co., Ltd. strengthened its position by enhancing its ability to supply packaged power and distribution equipment, recording revenue of 1.1799 trillion won, up 18.5%, and operating profit of 284.5 billion won, up 15.1%.

HD Hyundai is expected to continue growing in the fourth quarter and beyond. HDKSOE has an order backlog in the 100-trillion-won range, and orders continue to pour in. HMM, the country’s largest container shipping company, placed an order on the 20th for eight 13,000-TEU container ships worth 1.9196 trillion won. 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, HD Hyundai Heavy Industries and HD Hyundai Marine Engine have secured engine orders worth more than 6 trillion won. HD Hyundai Heavy Industries had initially set a target of about 3.6 trillion won, but is expected to exceed twice that amount by year-end. It 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 engine business is expected to expand year after year.
The engine boom is also expected to drive growth in the construction equipment division. HD Construction Equipment held an opening ceremony for its new engine plant at the Gunsan National Industrial Complex that day and began full-scale operations. The plant will produce generator engines for data centers, defense engines used in tanks, and battery packs installed in electric vehicles, among other products. For data centers in particular, the company unveiled its new 37-liter-class DX37 generator engine and will begin mass production in the first half of next year. It will also launch mass production of ultra-large generator engines—a 77-liter-class 3 MW model in 2028 and a 50-liter-class 2 MW model in 2029.
[email protected] Kim Yun-ho Reporter