HD KSOE net profit falls 51.3% quarter on quarter despite annual operating improvement
Key Facts
HD Korea Shipbuilding & Offshore Engineering’s net profit fell 51.3% in the third quarter of 2026 compared with the second quarter, according to disclosure data reported by DigitalToday. Quarterly revenue declined 7.2%, while operating income fell 12.0%. This followed the company’s reporting of pretax profit of 1.0835 trillion won, down 4.9% year on year. On an annual basis, results for some key units and segments showed growth in revenue and operating profit. The figures reflect a contrast between weaker quarter-on-quarter comparisons and annual improvement in several operating activities.
The company said results improved as revenue rose on productivity gains and higher ship prices, alongside strong performance in the engines and machinery and offshore facilities segments. It added that this came despite fewer working days for seasonal reasons and the impact of exchange-rate fluctuations. At HD Hyundai Heavy Industries, revenue was 5.7536 trillion won and operating profit was 899.2 billion won for the quarter. The two figures rose 30.2% and 61.3% year on year, respectively. The company linked the group’s improved performance to its operating factors, without specifically attributing these factors to revenue growth at this subsidiary.
HD Hyundai Samho recorded revenue of 2.3704 trillion won, up 20.5% year on year. Its operating profit was 479 billion won, up 56.3% from the same period a year earlier. The company said a higher share of liquefied natural gas carriers in revenue helped improve results. In the shipbuilding segment, revenue rose 10.3% to 6.8393 trillion won. The segment’s operating profit increased 32.3% to 1.1453 trillion won, as revenue recognition for high-value ships increased and productivity improved, the report said.
In the offshore facilities segment, revenue rose 35.4% to 379.8 billion won. The segment returned to operating profit during the quarter, according to the report. The result is relevant to assessing group performance, as revenue growth coincided with improved operating activity. An HD KSOE official said the company maintained “solid profitability” thanks to the performance of its key segments and continued productivity improvements. The official added that the company would continue to focus on selecting orders for high-value ships.
The company’s third-quarter results conference was scheduled for 28 October 2026 at 14:00 Korea time, with a question-and-answer session. The conference gives the company an opportunity to present its quarterly results and answer participants’ questions, according to the disclosure notice reported by DART Brief. It was scheduled for the same day the results were announced. The company official’s message affirmed continued productivity improvement and order selection. The notice did not provide further details about the topics for the question-and-answer session.