HJ Shipbuilding posts 825% operating profit surge

HJ Shipbuilding & Construction recorded operating profit of KRW 67.0 billion in 2025, an 824.8% increase from the previous year. The South Korean shipbuilder significantly exceeded market expectations with the result.

The company posted revenue of KRW 1.9997 trillion for the year, up 6% year-on-year. Net profit jumped 884.6% to KRW 51.4 billion from KRW 5.2 billion in 2024.

HJSC disclosed the figures on January 26, reporting changes in its profit structure exceeding 30%. Operating profit surpassed KRW 50 billion for the first time since 2020.

Shipbuilding Revenue Drives Recovery

The shipbuilding division led the turnaround. After falling to just 18% of total revenue in 2022, shipbuilding rebounded to account for nearly half of revenue in 2025. The recovery reflects improving market conditions and strong demand.

The company attributed its performance to strategic focus on special-purpose vessels and high-value commercial ships. HJSC concentrated on eco-friendly vessels equipped with advanced green technologies as global demand rises under stricter International Maritime Organization carbon reduction regulations.

The shipbuilder’s portfolio includes methanol-fueled container ships, LNG-powered container ships, and LNG bunkering vessels. This selective order strategy centered on environmentally friendly and high-value vessels improved profit margins.

The construction division also performed well. HJSC secured orders worth KRW 2.5 trillion in 2025, surpassing its annual target.

Defense Business Expands with U.S. Navy Entry

HJSC continues strengthening its defense sector presence. The company is building all 32 units of the ROK Navy’s advanced patrol craft (PKX-B) and eight air-cushion landing craft (LSF-II).

Recent wins include four high-speed patrol vessels and a 1,900-ton multipurpose chemical response vessel for the Korea Coast Guard. The contracts, worth KRW 380 billion, secure construction work for more than three years.

Earlier this year, HJSC signed a Master Ship Repair Agreement with the U.S. Navy. The certification allows the shipyard to participate in maintenance, repair, and overhaul projects for logistics support vessels, combat ships, and escort vessels.

The U.S. Navy MRO market represents approximately KRW 20 trillion annually over the next five years. HJSC views this as a new growth engine for the business.

Outlook Remains Positive

A company official said market conditions continue improving with rising demand for eco-friendly vessels. The U.S. Navy MRO business shows growing visibility of results.

“We expect our performance to continue improving this year,” the official stated. The company will focus on strengthening profitability and securing future competitiveness through differentiated technological capabilities.

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