On November 3, HD Korea Shipbuilding & Offshore Engineering released its performance report for the third quarter of 2025, achieving operating revenue of 7,581.5 billion Korean won (approximately 5.34 billion USD, 38.7 billion RMB), a year-on-year increase of 21.4%; achieving operating profit of 1,053.8 billion Korean won (approximately 742 million USD, 5.38 billion RMB), a year-on-year increase of 164.5%; achieving net profit of 767 billion Korean won (approximately 54 million USD, 390 million RMB), a year-on-year increase of 397%. This also marks the first time HD Korea Shipbuilding & Offshore Engineering’s quarterly operating profit has exceeded the 1 trillion won mark.
This performance also exceeded the previous forecast by the Korean financial information company F&Guide. The forecast released by F&Guide predicted that HD Korea Shipbuilding & Offshore Engineering’s operating profit for the third quarter of this year would be 932.9 billion Korean won (approximately 4.65 billion RMB).
In the first three quarters of this year, HD Korea Shipbuilding & Offshore Engineering cumulatively achieved operating revenue of 21,782.6 billion Korean won (approximately 15.397 billion USD, 111.5 billion RMB); cumulatively achieved operating profit of 2,866.6 billion Korean won (approximately 2.09 billion USD, 14.87 billion RMB), delivering an impressive report card.
In the first quarter of this year, HD Korea Shipbuilding & Offshore Engineering achieved operating revenue of 6,771.7 billion Korean won (approximately 4.713 billion USD, 34.4 billion RMB), a year-on-year increase of 22.8%; achieved operating profit of 859.2 billion Korean won (approximately 598 million USD, 4.36 billion RMB), a year-on-year increase of 436.3%. In the second quarter of this year, the company achieved operating revenue of 7,428.4 billion Korean won (approximately 5.344 billion USD, 38.4 billion RMB), a year-on-year increase of 12.3%; achieved operating profit of 953.6 billion Korean won (approximately 686 million USD, 4.926 billion RMB), a year-on-year increase of 153.3%.
HD Korea Shipbuilding & Offshore Engineering stated that in the third quarter of this year, despite seasonal factors leading to a reduction in working days, the company still achieved good performance. This was thanks to balanced growth across all areas of the shipbuilding business, including improved production efficiency in the merchant ship sector, an expanded proportion of operating revenue from high-priced ships, and increased operating revenue and profit in the engine machinery sector.
Looking at the three shipbuilding subsidiaries: In the third quarter of this year, HD Hyundai Heavy Industries achieved operating revenue of 4,417.9 billion Korean won (approximately 3.11 billion USD, 22.5 billion RMB) and operating profit of 557.3 billion Korean won (approximately 392 million USD, 2.84 billion RMB); HD Hyundai Samho achieved operating revenue of 1,966.5 billion Korean won (approximately 1.385 billion USD, 10 billion RMB) and operating profit of 306.4 billion Korean won (approximately 216 million USD, 1.56 billion RMB); HD Hyundai Mipo achieved operating revenue of 1,300.3 billion Korean won (approximately 916 million USD, 6.63 billion RMB) and operating profit of 200.8 billion Korean won (approximately 141 million USD, 1.02 billion RMB), representing year-on-year increases of 20.7% and 470.5% respectively.
Looking at other subsidiaries: In the third quarter of this year, HD Hyundai Marine Engine (formerly STX Heavy Industries) benefited from an expanded proportion of revenue from high-value-added engines and increased sales, as well as increased sales in the parts business. Its operating revenue and operating profit reached 109.1 billion Korean won (approximately 76.8 million USD, 557 million RMB) and 20.3 billion Korean won (approximately 14.3 million USD, 104 million RMB) respectively, representing year-on-year increases of 35% and 130.7%. HD Hyundai Energy Solutions was affected by seasonal factors, leading to a decrease in domestic module sales, but through increased exports to the US and expanded sales of new N-Type modules, its operating revenue reached 121 billion Korean won (approximately 85 million USD, 617 million RMB) and operating profit reached 14.7 billion Korean won (approximately 10.35 million USD, 75 million RMB).
Looking at various business sectors: HD Korea Shipbuilding & Offshore Engineering’s shipbuilding business, benefiting from improved production efficiency and rising ship prices, achieved operating revenue and operating profit of 6,198.5 billion Korean won (approximately 4.365 billion USD, 31.6 billion RMB) and 865.8 billion Korean won (approximately 610 million USD, 4.4 billion RMB) respectively, representing year-on-year increases of 16.5% and 128.9%. The engine machinery business, influenced by increased demand for dual-fuel engines due to strengthened global environmental regulations and increased deliveries, achieved operating revenue of 823.6 billion Korean won (approximately 580 million USD, 4.2 billion RMB), a year-on-year increase of 31%, and operating profit of 243.2 billion Korean won (approximately 170 million USD, 1.24 billion RMB), a year-on-year increase of 137.5%.
The offshore equipment business grew as revenue from major projects expanded, with operating revenue reaching 280.4 billion Korean won (approximately 197 million USD, 1.43 billion RMB), but turned from profit to loss due to one-time expenses.
Looking ahead, a representative from HD Korea Shipbuilding & Offshore Engineering stated: “It is expected that as the construction of environmentally friendly, high-value-added ships is successively reflected in performance, the company’s profits will continue to improve. We will strengthen market competitiveness and secure super-gap technology through the merger and reorganization of HD Hyundai Heavy Industries and HD Hyundai Mipo, leading the future shipbuilding market.”
HD Korea Shipbuilding & Offshore Engineering is also full of expectations for the growth of the LNG carrier newbuilding market next year. A company representative stated: “Since the second half of this year, the United States has successively approved five LNG projects. Market attention to LNG carriers is increasing. Although the specific order quantity is not yet clear, we anticipate demand for over 100 ships. If this number is truly reached, the company’s LNG carrier performance will also see growth next year.”
HD Korea Shipbuilding & Offshore Engineering also released a forecast for growth in submarine exports, targeting the global submarine export business it is fully promoting. A company representative stated: “The company has signed a Letter of Intent (LOI) with the Peruvian Navy’s Industrial Services Group (SIMA) for the joint development and construction of submarines, and the next step will be to sign a formal contract. If this project progresses, the company’s export-oriented submarine business targeting the global market will gain momentum. In the fourth quarter of this year, the company will announce the progress made in the special vessel sector.”
On the same day, HD Korea Shipbuilding & Offshore Engineering’s parent company, HD Hyundai Group, released its performance report for the third quarter of 2025, achieving operating revenue of 18,224.3 billion Korean won (approximately 12.8 billion USD, 93 billion RMB), a year-on-year increase of 9.8%; achieving operating profit of 1,702.4 billion Korean won (approximately 1.2 billion USD, 8.686 billion RMB), a year-on-year increase of 294.5%.
HD Hyundai Group stated that the good operating revenue performance in the third quarter was mainly due to steady growth in both the shipbuilding business and the power equipment business, coupled with the refinery segment turning a profit.
An HD Hyundai Group representative stated: “While the performance of the shipbuilding and power equipment businesses continues to improve, the refinery and construction machinery businesses have also reversed their downturns, contributing to the improvement in third-quarter performance. The Group will continue its stable performance trend through the development of eco-friendly technology and maximizing production efficiency.
