In a regulatory filing on Sunday, HD Hyundai Heavy Industries reported consolidated 2025 revenue of 17.5806 trillion won, up 21.4% from a year earlier. Operating profit surged 188.9% to 2.0375 trillion won. It was the first time operating profit exceeded 2 trillion won since 2012, during the industry’s peak boom.
The company attributed the improvement to a focus on high-value ship types, including liquefied natural gas carriers, ultra-large container ships and eco-friendly, high-efficiency vessels. In the fourth quarter, LNG carriers accounted for 48.4% of revenue, down slightly from the previous quarter, while the share of liquefied petroleum gas and ammonia carriers (VLAC) rose to 32.2%, offsetting the decline. More than 80% of total merchant-ship revenue came from high-value gas carriers, it said.
Building on the results, HD Hyundai Heavy Industries said it will broaden management activity this year to the Middle East, following efforts to expand overseas operations through cooperation on U.S. maintenance, repair and overhaul work and plans to establish a shipyard in India. It said it is also moving ahead with a plan to enter the Middle East directly by setting up a joint-venture shipyard.
The company’s push reflects expectations of continued large orders from Middle Eastern countries amid energy transition and rising defense demand, the report said. The region is seeing growing demand for both LNG-related vessels and offshore plants. HD Hyundai Heavy Industries said it will seek orders by leveraging its experience and technical competitiveness in building high-value ships.
It has also joined the Middle East’s largest defense exhibition in Saudi Arabia and has entered the competition for Saudi Arabia’s next frigate program, the report said.
A key pillar of the Middle East strategy is the IMI (International Maritime Industries) joint-venture shipyard being built by HD Korea Shipbuilding & Offshore Engineering, HD Hyundai’s intermediate shipbuilding holding company, with Saudi partners near Jubail in the King Salman Maritime Industrial Complex. IMI is targeting completion this year.
“HD Hyundai Heavy Industries is expanding its portfolio beyond merchant ships into special-purpose vessels and defense,” an industry official said. “Once IMI begins full operations in the second half of this year, it will have a base to respond directly to demand for high-value ships and offshore plants in the Middle East, bringing major change.”
* This article has been translated by AI.
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