HD Hyundai Construction Equipment Sees Q2 Operating Profit Drop 31% Due to One-Time Costs in China

HD Hyundai Construction Equipment announced that its consolidated operating profit for the second quarter of 2025 was 40 billion KRW, a decrease of 31.6% compared to the same period last year (58.5 billion KRW).

On July 24, HD Hyundai Construction Equipment reported sales of 967.7 billion KRW and operating profit of 40 billion KRW for the second quarter of this year. The company explained that the decline in operating profit was due to a one-time expense of 21.3 billion KRW related to the restructuring of its business in China.

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By region, sales in emerging markets such as Africa, the Middle East, and Indonesia increased by 32% compared to the same period last year, driven by rising demand for mining and infrastructure development. Sales in the second quarter of last year were 853 billion KRW. China also recorded a growth rate of 77%, supported by domestic stimulus measures and expanded exports. India maintained demand at the same level as the previous year.

Signs of recovery were also observed in advanced markets. North America and Europe showed gradual rebounds, with sales increasing by 23% and 5% quarter-on-quarter, respectively.

HD Hyundai Construction Equipment plans to improve its product mix and focus on expanding sales in advanced markets by launching high value-added products such as articulated dump trucks (ADT) and skid steer loaders in the second half of the year.

A representative from HD Hyundai Construction Equipment stated, "We expect the construction equipment market to enter a recovery phase starting this year," and added, "We will secure profitability by strengthening our presence in emerging markets and leveraging our global production bases."

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