HD Hyundai Marine Engine: Q1 Sales +61%, Op. Profit 32.6bn, Credit Rating Upgraded to A-, Order Backlog 1.34tn Won

Q1 2026 consolidated revenue: KRW 133.5bn (+61% YoY), operating profit: KRW 32.6bn, net profit: KRW 28.1bn, EPS: KRW 830
Credit rating upgraded from BBB+ to A- by Korea Data and Ecredible (April 2026)
Order backlog: KRW 1.34tn (up from KRW 1.13tn at beginning of period)
Net cash position: KRW 195.7bn (vs KRW 94.3bn at end 2025); no borrowings; total equity KRW 499.7bn
Final win in lawsuit with Defense Acquisition Program Administration regarding LST-II engine defects; related receivables recovered and allowance reversed
Subsidiary STX HI Malaysia Sdn. Bhd. liquidated in January 2026 (negligible impact)
Engine production utilization: 91.67%; crankshaft over-utilization at 126.38%
R&D expenses: KRW 7.0bn (5.3% of sales); continued investment in eco-friendly engine technology
Key customers: K Shipbuilding (21.75%), Sanfu (13.50%), Xiamen Xiangyu (12.58%), HD Korea Shipbuilding (10.73%)

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