HJ Heavy Industries Posts 8-Fold Jump in H1 2026 Operating Profit as Shipbuilding Business Drives Turnaround
HJ Heavy Industries has seen a significant improvement in its performance in the first half of 2026, driven by increased revenue from its shipbuilding business. The company’s shipbuilding sector, in particular, played a crucial role in boosting its overall profitability, with an operating profit of KRW 81.7 billion (approximately $59 million).
Financial Growth and Positive Trends
According to the consolidated financial statements of HJ Heavy Industries for the first half of 2026, the shipbuilder recorded operating revenue of KRW 1.2713 trillion (approximately $911 million), marking a year-on-year increase of 38.5%. The operating profit also saw a substantial rise, reaching KRW 89.4 billion (approximately $64 million), representing an eightfold year-on-year increase. Moreover, the company achieved a net profit of KRW 88.1 billion (approximately $63 million), a significant turnaround from the net loss recorded in the same period last year.
Factors Driving Performance
HJ Heavy Industries attributed its improved performance to the strong growth momentum in its shipbuilding division. The company’s focus on constructing eco-friendly, high-value-added commercial vessels, such as container ships, and profitability in specialized vessel segments, including defense-related ships, contributed to the growth in revenue and operating profit within the shipbuilding business.
In the first half of 2026, the shipbuilding business of HJ Heavy Industries reported operating income of 678.6 billion won, a 75.5% year-on-year increase. The operating profit of KRW 81.7 billion accounted for the majority of the company’s overall operating profit, showcasing a robust performance in the first half of the year. Despite challenges like rising raw material prices, the construction business of the company also remained profitable, with operating income and operating profit of 584.4 billion won and KRW 7.8 billion, respectively.
New Orders and Milestones
During the first half of 2026, HJ Heavy Industries secured orders for four new vessels, specifically four 11,000 TEU-class container ships commissioned by a European shipowner. These container ships, with a unit price exceeding $120 million, mark a significant milestone for the company. It is the first time that the Yeongdo Shipyard in Busan, the primary shipbuilding facility of HJ Heavy Industries, will construct large container ships with a capacity exceeding 10,000 TEU.
The positive growth trends and strategic developments in the shipbuilding sector have positioned HJ Heavy Industries as a key player in the maritime industry, showcasing its commitment to innovation and excellence in vessel construction.
