HD Korea Shipbuilding and Offshore Engineering (KSOE) reported a consolidated operating profit of KRW1.45 trillion (US$1.1 billion) for the third quarter of 2026.
The figure is an increase of 37.3 per cent from the same period last year. The result was 12 per cent lower than in the second quarter.
Revenue rose 9.3 per cent year on year to KRW8.29 trillion (US$6.2 billion) but fell 7.2 per cent sequentially. The operating margin was 17.5 per cent, up 3.6 percentage points year on year and down 0.9 points from the preceding quarter.
Fewer working days, appreciation of the won and one-off wage-settlement costs at HD Hyundai Heavy Industries (HHI) were cited by the company as reasons for the sequential decline. Management and the union finalised the agreement on October 27.
Around 75 per cent of the additional labour costs were recognised in the third quarter, with the remainder due in the fourth. Higher vessel prices and productivity gains drove the year-on-year improvement.
Operating profit for January–September totalled KRW4.45 trillion (US$3.3 billion). That already exceeds the company's previous full-year record of KRW3.9 trillion (US$2.9 billion), set in 2025.
HD Hyundai Marine Engine posted a record operating margin of 28.5 per cent. Its revenue rose 65 per cent from the second quarter to KRW211.4 billion (US$160 million). Operating profit of approximately KRW60 billion (US$45 million) was nearly triple the year-earlier figure.
The company attributed the gains to increased scheduled engine deliveries, higher average selling prices, an improved product mix and a larger share of dual-fuel engines.
The wider engine and machinery business earned an operating profit of KRW290.1 billion (US$220 million) on revenue of KRW1.2 trillion (US$900 million), a margin of 24.2 per cent.
By the end of September, KSOE had secured orders for 176 vessels worth US$19.1 billion, exceeding its full-year target. The company said its share exceeded 50 per cent of worldwide orders in the very large gas carrier and very large ammonia carrier markets. It added that vessel prices were stable or rising.
The shipbuilding segment generated an operating profit of KRW1.15 trillion (US$860 million) on revenue of KRW6.84 trillion (US$5.1 billion). Operating profit rose 32.3 per cent year on year.
HHI increased operating profit by 61.3 per cent to KRW899.2 billion (US$670 million). At HD Hyundai Samho, operating profit climbed 56.3 per cent to KRW479 billion (US$360 million), with a larger contribution from LNG carriers.
The offshore plant segment earned KRW126.4 billion (US$94 million), returning to profit from a loss in the third quarter of 2025. The result was supported by progress on the Ruya project and KRW18 billion (US$13 million) recognised as revenue from change orders. The company expects offshore revenue to ease in the fourth quarter as the Trion project approaches completion.
Net income fell 11.4 per cent year on year to KRW777 billion (US$580 million), reflecting foreign-exchange losses of KRW610.2 billion (US$460 million). Net cash stood at KRW11.17 trillion (US$8.3 billion) at the end of the quarter.
For the fourth quarter, the company expects demand for environmentally friendly replacement vessels and higher seaborne cargo volumes to bolster order activity. It also cited political risks, shifts in the global economy and growing shipyard capacity as factors affecting the market.
KSOE also expects additiional gains in engine profitability despite continuing currency pressure. Its business supplying engines for onshore power generation has booked almost all of its planned capacity for 2028 and 2029, set at 1.5 GW and three GW, respectively.