South Korea’s three largest shipbuilders—HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries—are set to deliver a sharp first-quarter earnings uplift as higher-margin vessel orders begin to dominate yard output, according to financial forecasts.
Combined revenue is projected at 14.0996 trillion won ($10.4bn), with operating profit at 1.9221 trillion won ($1.42bn), up 13.62% and 54.9% year on year, signalling a decisive recovery in margins.
HD Korea Shipbuilding & Offshore Engineering is expected to generate 7.7866 trillion won ($5.74bn) in revenue and 1.1902 trillion won ($877m) in operating profit, rising 14.99% and 38.53%.
Hanwha Ocean is forecast at 3.302 trillion won ($2.44bn) in revenue and 383.3 billion won ($283m) in operating profit, up 5.06% and 48.22%.
Samsung Heavy Industries is projected to post 3.011 trillion won ($2.22bn) in revenue and 348.6 billion won ($257m) in operating profit, surging 20.71% and 183.24%.
The earnings momentum reflects a structural shift away from low-margin contracting towards higher-value tonnage, led by LNG carriers, VLCCs and container ships.
LNG carriers remain the core profit driver, combining technical complexity with pricing power. Order intake in the first quarter reinforces that transition.
HD Korea Shipbuilding & Offshore Engineering secured more than 40 contracts worth nearly $6bn, pushing backlog above $253.1bn.
Hanwha Ocean booked 11 vessels valued at $2.32bn as of March 25, while Samsung Heavy Industries added 14 units worth $2.9bn as of March 23, spanning LNG carriers, LPG/ammonia carriers, VLCCs and container ships.
Margin expansion is accelerating as legacy low-return contracts roll off and are replaced by higher-yield projects.
Newbuilding prices remain firm, with the Clarksons Research Newbuilding Price Index at 182.08, holding above the 180 threshold associated with a strong cycle.
Forward visibility remains tight. Delivery slots at major yards extend through 2029, while constrained drydock capacity continues to underpin pricing.
New orders for South Korean shipyards are projected at $38.8bn in 2026, up 10% year on year, driven primarily by LNG carriers and tankers.
HD Korea Shipbuilding & Offshore Engineering is the intermediate holding company for HD Hyundai’s shipbuilding operations, coordinating commercial vessel construction, offshore engineering and procurement across affiliated yards.
Hanwha Ocean is a shipbuilding and offshore engineering company within Hanwha Group, formed following the acquisition and restructuring of Daewoo Shipbuilding & Marine Engineering, with activities spanning commercial vessels, offshore units and naval construction.
Samsung Heavy Industries is a shipbuilding and offshore engineering company within Samsung Group, engaged in large-scale vessel construction and offshore projects from its core yard base in Geoje.
