"Surprise!"... HJ Heavy Industries Posts Eightfold Profit Increase Over Previous Year
by Kim Yongu
Published 27 Jan.2026 12:25(KST)
2025 Operating Profit Surges 824.8% to 67 Billion Won, Achieving an Earnings Surprise
Shipbuilding Division Sales Up, Profit Structure Improved, New Growth Engine with U.S. Navy MRO in Full Swing
HJ Heavy Industries delivered an earnings surprise last year, boosting its operating profit by more than eight times compared to the previous year. This performance is attributed to increased sales in the shipbuilding division and a significant improvement in its profit structure.
According to the recent disclosure of a "change of 30% or more in sales or profit structure," HJ Heavy Industries recorded sales of 1.9997 trillion won and an operating profit of 67 billion won for 2025. Sales increased by 6% year-on-year, while operating profit surged by 824.8%. This is more than eight times the 7.2 billion won operating profit achieved in 2024. Net profit for the period also rose by 884.6% to 51.4 billion won.
This marks the first time in five years since 2020, when HJ Heavy Industries posted an operating profit of 51.6 billion won, that the company has surpassed the 50 billion won threshold. The company explained that its strategy of expanding orders for eco-friendly, high value-added merchant vessels and diversifying its business based on the special ship segment has translated into strong results.
Among its two main businesses, the shipbuilding division stood out with both increased sales and improved profitability. After dropping to just 18% of total sales in 2022, shipbuilding revenue rebounded rapidly with the market recovery, accounting for about half of the company’s total sales last year. The construction division also exceeded its annual target last year, achieving 2.5 trillion won in new orders.
From a profitability perspective, the selective order strategy focused on eco-friendly, high value-added vessels led to improved margins. With the International Maritime Organization (IMO) strengthening carbon reduction regulations, orders for eco-friendly ships have increased. The company’s focus on building vessels equipped with green technologies-such as methanol-powered container ships, LNG-powered container ships, and LNG bunkering vessels-has been credited with driving this strong performance.
The defense sector also continued to grow. HJ Heavy Industries secured and built all 32 new PKX-B class high-speed boats and eight LSF-II class air-cushion high-speed landing craft ordered by the Navy, supporting its results. At the end of last year, the company also won orders for four high-speed boats worth 380 billion won and a 1,900-ton multi-purpose chemical response vessel for the Coast Guard, securing a stable construction backlog for more than three years.
Earlier this year, HJ Heavy Industries signed an MSRA with the U.S. Navy, establishing a new growth engine. The MSRA is a maintenance certification recognized by the U.S. Navy, allowing certified shipyards to participate in the U.S. Navy’s ship maintenance, repair, and overhaul (MRO) projects, which are estimated at 20 trillion won annually over the next five years.
An official from HJ Heavy Industries stated, "The market continues to improve thanks to rising demand for eco-friendly ships, and the results of the U.S. Navy MRO project will gradually become visible." The official added, "We will continue to focus on strengthening profitability and securing future competitiveness based on our differentiated technological edge."
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