HD Hyundai Electric Signs KRW 173 Billion Ultra-High Voltage Transformer Supply Contract... Can the Record-High Quarterly Orders Continue?

Roadmap for the North American Power Market Unveiled at IEEE
KRW 173 Billion Contract Signed On-Site
for 765kV Ultra-High Voltage Transformer and Reactor Supply

HD Hyundai Electric has signed a contract worth KRW 173 billion to supply ultra-high voltage transformers to a major U.S. utility company. As the company accelerates its push into the North American market, there is growing interest in whether it can continue its record-breaking new orders for the quarter.

On May 7, HD Hyundai Electric announced through a public disclosure that its U.S. subsidiary in Atlanta has secured a contract to supply 765kV ultra-high voltage transformers and reactors worth KRW 173 billion to a major utility company in the central region of the United States. The contract amount is equivalent to 4.24% of the company’s recent sales (KRW 4.0795 trillion), and the contract period extends until August 31, 2029.

Visitors are exploring the HD Hyundai Electric exhibition booth at 'IEEE 2026,' North America's largest power industry exhibition held at McCormick Place in Chicago, USA. HD Hyundai Electric

HD Hyundai Electric is ramping up its efforts to target the local power market, such as unveiling its next-generation technology roadmap at 'IEEE 2026,' the largest power industry exhibition in North America, which was recently held at McCormick Place in Chicago. This contract was also signed at the exhibition, and HD Hyundai Electric will participate in the key 765kV backbone project of the 'SPP Long-Term Transmission Master Plan,' a major transmission network construction initiative for the South and Central United States.

The SPP area is the most densely concentrated wind power region in the U.S., and it is a key market where demand for ultra-high voltage transmission infrastructure is rapidly increasing due to the expansion of renewable energy. With this recent order, HD Hyundai Electric plans to strengthen its foothold in the North American ultra-high voltage transmission equipment market and expand its business scope by securing additional projects in the future.

With the advent of the AI data center-driven power supercycle, the market is becoming increasingly optimistic about the performance of domestic power companies. In the first quarter of this year, HD Hyundai Electric recorded consolidated sales of KRW 1.0365 trillion (up 2.1% year-on-year) and operating profit of KRW 258.3 billion (up 18.4%), slightly below market expectations. However, new orders in the first quarter alone amounted to USD 1.8 billion (up 34.6%), marking an all-time quarterly high. As of the end of the first quarter, the order backlog stood at USD 7.888 billion (up 28.2%), with the breakthrough of USD 8 billion (around KRW 12 trillion) anticipated.

Of the new orders secured in the first quarter of this year, 73.2% came from North America. Recently, in North America, the 765kV transmission network—which is effectively the highest voltage level—has emerged as a 'selling point' for attracting data centers. As a result, the presence of HD Hyundai Electric and Hyosung Heavy Industries, which can produce these locally, is rapidly rising. In the United States, more than 70% of transmission networks are over 25 years old, and expanding ultra-high voltage transmission lines is essential to connect AI data centers and renewable energy sources. According to SK Securities, the currently approved 765kV new transmission lines in North America total about 6,360 miles (approximately 10,200 km), with the potential demand estimated to be around 18 to 30 substations and approximately 200 units of 765kV transformers.

Lee Sanghyun, a researcher at BNK Securities, commented on the company’s future earnings trend, stating, "The traditional seasonal pattern of low first-quarter and high fourth-quarter performance is diminishing, and with fully booked production slots, HD Hyundai Electric is expected to post evenly distributed quarterly sales exceeding KRW 1 trillion throughout 2026. In North America as well, the cumulative capital expenditure (CAPEX) forecasts related to AI have been revised upwards to around USD 3 trillion, about double previous estimates, indicating clearly strong medium- to long-term market demand."

Meanwhile, at IEEE 2026, HD Hyundai Electric drew attention by unveiling its 362kV-class dead tank circuit breaker (DTCB) for the first time, targeting the Americas market. The DTCB is an ultra-high voltage gas-insulated circuit breaker with its interrupting unit housed inside a grounded metal tank. It stands out for its high reliability and durability, designed to meet the diverse needs of North American customers, and is currently being developed for a planned launch in 2028.

A representative from HD Hyundai Electric stated, "We are continuously developing locally tailored products to meet expanding investments in North American power infrastructure and increasing demand for replacing aging equipment," adding, "Based on our next-generation power equipment lineup covering everything from transmission to distribution, we will continue to solidify our position in the North American market."

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