HD Hyundai Q2 Operating Profit 879.9 Billion KRW... Shipbuilding Up 429%, Power Equipment Up 257%

Shipbuilding Industry Achieves Five Consecutive Quarters of Profit
HD Hyundai Electric Records Operating Profit Margin of 22.9%

HD Hyundai announced on the 25th that it recorded an operating profit of 879.9 billion KRW in the second quarter of this year, an increase of 86.2% compared to the previous year, driven by the boom in shipbuilding and power equipment businesses. Sales rose 12.4% year-on-year to 17.5549 trillion KRW.

HD Hyundai attributed the strong performance to "improvements in the shipbuilding sector's results and continued strong momentum in the power equipment and ship AM (After Market) and digital solutions businesses."

Looking at major business segments, HD Korea Shipbuilding & Offshore, the intermediate holding company for the shipbuilding and offshore sector, achieved a profit for five consecutive quarters. Sales of high value-added vessels such as eco-friendly dual-fuel ships were fully reflected in the results, recording sales of 6.6155 trillion KRW, up 21.3% from the previous year. Operating profit increased by 428.7% year-on-year to 376.4 billion KRW due to improved profitability from selective orders and cost reduction efforts through production stabilization.

The world's first methanol-powered ultra-large container ship 'Ane Maersk' built by HD Hyundai Heavy Industries [Photo by HD Hyundai Heavy Industries]

HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding & Offshore, posted sales of 3.884 trillion KRW, up 26.7% year-on-year; HD Hyundai Samho recorded sales of 1.8106 trillion KRW, up 16.9%; and HD Hyundai Mipo achieved sales of 1.1291 trillion KRW, up 9.3%. HD Hyundai Heavy Industries and HD Hyundai Samho led the improvement in the shipbuilding sector’s performance with operating profits of 195.6 billion KRW and 175.5 billion KRW, up 185.5% and 182.2% respectively from the previous year. Notably, HD Hyundai Mipo recorded an operating profit of 17.4 billion KRW, successfully returning to profitability after seven quarters.

HD Hyundai Electric recorded sales of 916.9 billion KRW, a 42.7% increase year-on-year, supported by the expansion of global power infrastructure demand. Operating profit surged 257.1% to 210 billion KRW, achieving an operating margin of 22.9%.

HD Hyundai Electric Extra High Voltage Transformer
Photo by HD Hyundai Electric

In the energy sector, HD Hyundai Oilbank posted sales of 7.844 trillion KRW and an operating profit of 73.4 billion KRW. Sales and operating profit declined compared to the first quarter due to a drop in refining margins and worsening market conditions for light oil products such as gasoline and diesel. HD Hyundai Oilbank expects market conditions to improve in the second half of the year due to increased industrial demand and higher heating oil usage in winter. The company plans to enhance profitability by expanding the supply of eco-friendly products such as biofuels.

In the construction machinery sector, HD Hyundai Site Solutions recorded sales of 2.0131 trillion KRW and operating profit of 169.4 billion KRW, down 16.4% and 37.5% respectively year-on-year, as the global construction machinery market contraction continued in the second quarter amid a high-interest-rate environment. HD Hyundai Site Solutions expects performance to improve in the second half due to interest rate cuts and increased infrastructure investment, and plans to strengthen competitiveness through expanding its sales network and launching new products.

HD Hyundai Marine Solutions recorded sales of 437.9 billion KRW, up 20.2% year-on-year, driven by strong performance in the ship AM business amid tightening eco-friendly regulations and expansion of the digital solutions business. Operating profit increased 29.6% to 71 billion KRW. HD Hyundai Energy Solutions posted sales of 112.8 billion KRW and operating profit of 7.9 billion KRW, while HD Hyundai Robotics recorded sales of 69.7 billion KRW and operating profit of 300 million KRW, with both affiliates returning to profitability after three quarters.

An HD Hyundai official said, "Despite rapidly changing international circumstances, we were able to maintain growth through tailored strategies based on diversified portfolios by business group. We will continue to maintain stable performance trends in the second half through profitability-focused sales strategies."

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