- Operating profit reached KRW 67.0 billion in 2025, marking an 824.8% year-on-year increase and delivering an earnings surprise
- Improved profit structure driven by growth in shipbuilding revenue, with the U.S. Navy MRO business emerging as a new growth engine

- HJSC’s Methanol-fueled Container Ship

HJ Shipbuilding & Construction (HJSC) delivered an earnings surprise in 2025, posting an operating profit more than eight times higher than the previous year. The strong performance was driven by rising shipbuilding revenue and a significantly improved profit structure.

According to the company’s disclosure on January 26 regarding changes in revenue or profit structure exceeding 30%, HJSC recorded revenue of KRW 1.9997 trillion and operating profit of KRW 67.0 billion in 2025. Specifically, revenue increased by 6% year-on-year, while operating profit surged by 824.8%, exceeding eight times the KRW 7.2 billion recorded in 2024. Net profit also rose sharply to KRW 51.4 billion, up 884.6% from the previous year.

HJSC’s operating profit surpassed KRW 50 billion for the first time in five years since 2020. The company attributed the strong performance to its strategic focus on diversifying its special-purpose vessel business and expanding its portfolio of eco-friendly and high-value commercial ships.

Among its two core business segments, the shipbuilding division showed particularly strong growth. After dropping to just 18% of total revenue in 2022, shipbuilding revenue rebounded rapidly amid an improving market environment and accounted for nearly half of total revenue last year. The construction division also demonstrated solid performance, securing orders worth KRW 2.5 trillion in 2025 and surpassing its annual target.

From a profitability perspective, HJSC’s selective order strategy centered on eco-friendly and high-value vessels played a key role in boosting margins. As global demand for environmentally friendly ships continues to rise amid stricter carbon reduction regulations by the International Maritime Organization (IMO), the global shipbuilder concentrated on building vessels equipped with advanced green technologies, including methanol-fueled container ships, LNG-powered container ships, and LNG bunkering vessels. This strategic focus has been a major driver of the company’s improved results. 

In the defense industry, HJSC continues to strengthen its growth trajectory based on its advanced technological capabilities. The South Korean shipbuilder secured and is constructing all 32 units of the ROK Navy’s advanced patrol craft (PKX-B) and eight units of air-cushion landing craft (LSF-II). In addition, the company recently won contracts worth KRW 380 billion for four high-speed patrol vessels and a 1,900-ton multipurpose chemical response vessel for the Korea Coast Guard, securing stable construction workloads for more than three years.

- HJSC’s First US Navy MRO Project Vessel ‘USNS Amelia Earhart’ 

Early this year, HJSC signed a Master Ship Repair Agreement (MSRA) with the U.S. Navy, establishing a new growth engine by entering the U.S. Navy’s MRO market, estimated at approximately KRW 20 trillion annually over the next five years. The MSRA is a certification granted by the U.S. Navy that authorizes shipyards to participate in maintenance, repair, and overhaul (MRO) projects not only for logistics support vessels but also for major naval assets, including combat ships and escort vessels.

An official from HJSC remarked, “With the continued improvement in market conditions driven by rising demand for eco-friendly vessels and the growing visibility of results from the U.S. Navy MRO business, we expect our performance to continue improving this year.” He continued, “We will focus on strengthening profitability and securing future competitiveness through differentiated technological capabilities.”