"AI-Driven Surge" Powers HD Hyundai Electric to 18% Increase in Q1 Operating Profit

Sales Reach KRW 1.0365 Trillion, Operating Profit at KRW 258.3 Billion
Operating Profit Margin Stands at 24.9%
Growth Driven by North American Power Transformer Performance

HD Hyundai Electric reported an 18% year-on-year increase in operating profit for the first quarter of this year, driven by a significant rise in power equipment sales. This growth was attributed to surging demand from AI-driven data centers and replacement needs for aging power grids.

On April 28, HD Hyundai Electric announced via a regulatory filing that it recorded sales of KRW 1.0365 trillion and operating profit of KRW 258.3 billion for the first quarter of 2026. Compared to the same period last year, sales rose by 2.1%, and operating profit grew by 18.4%. The operating profit margin reached 24.9%.

By product category, the power equipment segment showed the most pronounced growth. Thanks to expanded performance in North American power transformers, power equipment sales surged 21.6% year-on-year. Rotating machinery sales also increased by 10.8%, buoyed by strong demand for marine products.

However, sales of power distribution equipment fell by 24.2% year-on-year, due to a base effect from large-scale power distribution transformer sales in the same period last year and deferred deliveries of low-voltage circuit breakers caused by geopolitical risks in the Middle East. Each of these factors independently contributed to the decline.

By region, sales in the North American market jumped 26.6% year-on-year, leading overall performance growth. In contrast, sales in the European market declined quarter-on-quarter due to a high base effect but still increased by 17.0% compared to the same period last year.

New orders in the first quarter amounted to USD 1.797 billion, up 34.6% year-on-year, filling 42.6% of the annual order target of USD 4.222 billion. The order backlog reached USD 7.888 billion, marking a 17.2% increase from the end of last year.

A representative from HD Hyundai Electric stated, "Despite continuing our selective order-taking policy focused on profitability, we are seeing sustained growth in orders thanks to the spread of AI data centers and demand for replacing outdated power grids. We will ensure the smooth completion of ongoing expansion projects at our Ulsan plant and North American manufacturing subsidiary to maintain solid growth."

Meanwhile, on the same day, HD Hyundai Electric separately announced that it will pay a quarterly cash dividend of KRW 1,300 per common share. The total dividend payout will amount to KRW 46.8 billion, with the record date set for May 13 and the payment date scheduled for May 27.

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