HD Hyundai Construction Equipment Surpasses 1 Trillion Won in Sales for Second Consecutive Quarter

Simultaneous Improvement in Financial Soundness

HD Hyundai Construction Equipment surpassed 1 trillion KRW in sales for the second consecutive quarter.

Hyundai Construction Equipment Material Handler

HD Hyundai Construction Equipment announced on the 26th that it recorded sales of 1.0321 trillion KRW and an operating profit of 96.6 billion KRW in the second quarter of this year. Compared to the same period last year, sales increased by 17.9% and operating profit rose by 163.2%.

Following sales of 1.0183 trillion KRW in the first quarter, HD Hyundai Construction Equipment also recorded sales of 1.0321 trillion KRW in the second quarter, surpassing 1 trillion KRW in sales for two consecutive quarters.

Through sales growth, logistics improvements, and price increases, profitability was strengthened, resulting in an operating profit margin close to double digits at 9.4%. This is the first time the operating profit margin has reached the 9% range since the company was established as an independent entity in 2017. Financial soundness also improved. The company’s debt ratio and borrowings ratio for the second quarter fell to 93% and 49%, respectively, dropping below 100% and 50%.

Growth in demand for construction infrastructure in advanced markets centered on North America, as well as direct export markets such as Latin America and the Middle East, drove performance growth. North America recorded sales of 265.6 billion KRW in the second quarter, setting a quarterly sales record. Europe also saw a 28% increase from the previous quarter, recording sales of 139.3 billion KRW due to expanded infrastructure investments in major countries such as Germany, Italy, and France.

Steady growth continued across product categories as well. Sales of industrial vehicles increased by 71.5% compared to the same period last year. Sales in the construction equipment and parts business divisions also rose by 14.9% and 4.6%, respectively, year-on-year.

HD Hyundai Construction Equipment expects the stable performance trend in the first half of the year to continue into the second half, driven by the global expansion of infrastructure investments and increased demand for minerals related to secondary batteries. In line with the growing demand for construction equipment in advanced markets such as North America and Europe, as well as emerging countries, a new mini excavator model will be launched in the second half of the year.

An HD Hyundai Construction Equipment official stated, “Despite the delayed recovery in the Chinese market in the second quarter, we achieved solid business results through a diversification strategy of global sales channels,” adding, “In the second half, we will continue to focus on improving profitability while actively participating in projects such as the Middle East NEOM project and Ukraine reconstruction efforts together with the construction equipment division within the group.”

This content was produced with the assistance of AI translation services.