HJ Heavy Industries has achieved a significant earnings surprise in the first half of this year, driven by remarkable improvements in its shipbuilding sector and stable orders in construction.
On August 12, HJ Heavy Industries announced that it recorded consolidated revenues of 1.2713 trillion won, operating profit of 89.4 billion won, and net profit of 88.1 billion won for the first half of 2026.
These figures represent a 38.5% increase in revenue compared to the same period last year (917.8 billion won in revenue, 10.8 billion won in operating profit, and a net loss of 1.1 billion won), with operating profit soaring more than eightfold. The company successfully turned its net profit into a substantial gain, marking a clear turnaround in performance.
The shipbuilding sector was the main contributor to this strong performance. The sector saw a significant uptick in the construction of eco-friendly and high-value container ships, alongside stable profitability from defense and special ship projects.
In the first half, the shipbuilding division generated 678.6 billion won in revenue, a 75.5% increase from 386.6 billion won in the same period last year, and recorded an operating profit of 81.7 billion won, leading the overall performance surge.
Meanwhile, the construction division maintained a stable profit trend despite rising raw material costs, thanks to the smooth progress of public projects and housing and civil engineering works. The construction sector reported revenues of 584.4 billion won and an operating profit of 7.8 billion won in the first half.
The company plans to continue focusing on profitability through rigorous process management and risk management, maintaining a selective order intake strategy.
An HJ Heavy Industries official stated, "The profitability-focused order strategy, process efficiency improvements, and cost reduction efforts we have consistently pursued over the past few years are now bearing fruit. We aim to sustain growth in the second half through eco-friendly and high-value ship orders in the shipbuilding sector and stable portfolio management in construction, enhancing our long-term competitiveness and shareholder value."
Additionally, HJ Heavy Industries is accelerating efforts to secure future growth engines. The company has recently been selected as the lead organization for a joint research and development project with the U.S. in shipbuilding, focusing on AI-based welding technology for vessels, and is also enhancing its capabilities to enter the U.S. ship maintenance, repair, and overhaul (MRO) market.
* This article has been translated by AI.
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