Samsung Heavy Industries (010140)

**[Business Overview]** Samsung Heavy Industries, established in 1974, is a specialized company in the shipbuilding & offshore and construction sectors. Its main business areas consist of the Shipbuilding & Offshore division, which is responsible for the construction and sale of ships and offshore platforms, and the Construction division, which carries out building and civil engineering works. Key products and services include high-value-added ships and offshore plants such as LNG carriers, ultra-large container ships, crude oil tankers, drillships, FPSOs, FLNGs, FPUs, and FSRUs. As of 2025, the Shipbuilding & Offshore division accounted for 96.03% and the Construction division for 3.97% of the consolidated cumulative revenue, indicating an overwhelmingly high proportion for the Shipbuilding & Offshore division. The company's main clients are global shipping companies and oil majors, and it maintains the world's No. 1 market share in high-value-added products such as LNG carriers, drillships, and FPSOs. **[Core Competitiveness]** Samsung Heavy Industries possesses unparalleled technological competitiveness in the high-value-added ship and offshore plant sectors. Specifically, it maintains the world's No. 1 market share in advanced shipbuilding technologies and high-value-added products such as drillships, LNG carriers, and FPSOs, and has developed and built the world's first ice-breaking oil tanker and LNG-FPSO. By applying its proprietary cargo containment system technology to actual vessels, it has secured cost and quality competitiveness, and through smart shipyard technology, it operates world-class automated production facilities. Furthermore, it is actively investing in the development of autonomous navigation and eco-friendly technologies, leading future shipbuilding and offshore technologies. **[Performance Analysis]** Samsung Heavy Industries has shown a clear trend of improvement in revenue and profitability over the past few years. Revenue increased by 34.7% from KRW 5,944.7 billion in 2022 to KRW 8,009.4 billion in 2023, and grew by 23.6% to KRW 9,903.1 billion in 2024. In 2025, it recorded revenue of KRW 10,650.0 billion, showing a growth rate of 7.5%. Operating income turned profitable in 2023 at KRW 233.3 billion from a deficit of KRW -854.4 billion in 2022, and significantly increased to KRW 502.7 billion in 2024 and KRW 862.2 billion in 2025. Net income also turned profitable in 2024 at KRW 53.9 billion from deficits of KRW -627.4 billion in 2022 and KRW -155.6 billion in 2023, and then reached KRW 535.8 billion in 2025, indicating a significant improvement in profitability. The operating profit margin increased from -14.37% in 2022 to 8.10% in 2025. Looking at the quarterly performance for 2025, Q1 revenue was KRW 2,494.3 billion with operating income of KRW 123.1 billion, and Q2 revenue was KRW 188.7 billion with operating income of KRW 81.7 billion. In Q3, revenue was KRW -48.2 billion with operating income of KRW 33.3 billion; the Q3 revenue figure is unusual. In Q4, it achieved revenue of KRW 8,015.2 billion and operating income of KRW 624.1 billion, driving the annual performance. **[Financial Health]** Samsung Heavy Industries' financial health showed significant improvement in 2025. The debt-to-equity ratio increased from 305.71% in 2022 to 358.59% in 2024, but significantly decreased to 265.05% in 2025, stabilizing the financial structure. The current ratio decreased from 91.27% in 2022 to 77.89% in 2024, but slightly improved to 78.61% in 2025. ROE (Return on Equity) recorded deficits of -17.57% in 2022 and -4.56% in 2023, but successfully turned profitable at 1.44% in 2024, and then significantly increased to 13.08% in 2025, greatly enhancing capital utilization efficiency. **[Outlook]** In the future, Samsung Heavy Industries is expected to benefit from the increasing demand for eco-friendly, high-value-added ships such as LNG carriers and methanol-fueled vessels, driven by stricter environmental regulations from the International Maritime Organization (IMO) and the energy transition trend. In particular, orders for LNG carriers are expected to continue steadily at an annual scale of 80-100 vessels until 2027, and the recovery in demand for offshore plants is also a positive factor. The company aims for continuous profitability improvement by expanding the revenue proportion of its high-profit offshore sector and securing large offshore plant projects such as Coral Norte FLNG and the U.S. Delfin FLNG. It plans to maintain its market-leading position by focusing its capabilities on research and development for new product development and strengthening performance and quality competitiveness.