BHI Posts Q1 Earnings Surprise: "Performance Rally Begins"

Boosted by growing global demand for power infrastructure, BHI has posted an earnings surprise. On May 15, BHI announced that its standalone operating profit for the first quarter of this year surged by 472% year-on-year to reach 14.5 billion KRW. During the same period, revenue and net profit increased by 90.8% and 71.1%, respectively, recording 135.1 billion KRW and 9.6 billion KRW.

On a consolidated basis, BHI reported first-quarter revenue of 135.3 billion KRW, marking approximately 85.1% growth compared to the same period last year. Operating profit reached 12.4 billion KRW and net profit was 8.7 billion KRW, up by about 253.4% and 45%, respectively. The standalone operating margin exceeded 10%. Even on a consolidated basis, the company achieved a near double-digit operating margin, demonstrating both profitability and growth.

This strong performance is attributed to the expanded recognition of revenue from a large order backlog accumulated since last year. Last year, BHI secured a record-high 1.48 trillion KRW in new orders. As of May this year, the company has already accumulated a total of 1.2 trillion KRW in new orders, raising the possibility of achieving an all-time annual performance record.

As of May, BHI holds an order backlog totaling approximately 2.4 trillion KRW. Based on this, the company expects to maintain stable growth in performance over the next several years. In particular, BHI is strengthening its global order competitiveness in key business areas such as nuclear power, liquefied natural gas (LNG), and heat recovery steam generators (HRSG) for combined cycle power plants. Recently, the company also secured a 520 billion KRW contract for a circulating fluidized bed combustion (CFBC) boiler for a power company in the Philippines-the largest single order in its history.

A BHI representative stated, "As the global power infrastructure market enters a supercycle, last year's large-scale order intake is now translating into tangible results from the first quarter of this year. If the current trend continues, we expect to achieve record annual results this year as well."

He added, "Going forward, we will continue to expand orders in our core areas such as nuclear power, LNG, and CFBC, while also pursuing meaningful technological achievements and global collaboration opportunities in next-generation energy markets, including small modular reactors (SMR), ammonia co-firing power generation, and green hydrogen."