HD Construction Machinery Q1 Operating Profit Surges 88% Year-on-Year to 190.7 Billion Won
by Jang Bokyeong
Published 27 Apr.2026 16:19(KST)
Q1 Sales Reach 2.3 Trillion Won, Up 22% Year-on-Year
First Earnings Since Integration... "One Team Synergy Effect"
HD Construction Machinery continues to demonstrate growth, with its operating profit roughly doubling year-on-year. This performance is believed to result from the synergy created by the integration of HD Hyundai Construction Equipment and HD Hyundai Infracore in January.
On April 27, HD Construction Machinery announced that it recorded 2.3049 trillion won in sales and an operating profit of 190.7 billion won in the first quarter of this year. Compared to the same period last year, sales increased by 22.1%, and operating profit grew by 88.3%.
This sales growth was driven by the full-scale recovery of global construction equipment demand and accelerated growth in industrial and defense engine sales. Operating profit also saw a significant increase year-on-year, as profitability improved in the construction machinery division and the engine business maintained solid earnings.
HD Construction Machinery sought to create synergy between the Hyundai and Develon brands based on its eight-region sales management system. By integrating all functions-including production, sales, purchasing, and research & development (R&D)-the company also strengthened its cost competitiveness.
The operation of integrated assembly and delivery centers in Europe and North America reduced lead times by 30% and cut costs by 20% compared to before. In China, the company unified its production base from the previous dual system of Jiangsu and Yantai to a single facility in Yantai, improving both production and cost efficiency.
By business segment, the construction machinery division recorded sales of 1.9275 trillion won, up 26.9% year-on-year. Operating profit reached 148.6 billion won, achieving an operating margin of 7.7%.
Notably, sales increased evenly across all global regions. In emerging markets such as the Middle East & Africa and Latin America, sales of ultra-large mining equipment and expanded infrastructure investment led to sharp year-on-year sales growth of 68.1% and 46.3%, respectively. Sales in advanced markets such as North America and Europe rose by 26% and 59%, respectively. In China, sales grew by 17% from the previous year, driven by increased equipment demand as construction companies expanded overseas projects.
The engine business division posted sales of 336.1 billion won, up 10% year-on-year, supported by rising sales of industrial engines and stable growth in defense engine sales. Operating profit was 47.3 billion won, up 8% from the previous year, with an operating margin of 14.1%.
A representative from HD Construction Machinery stated, "We will continue our growth by expanding construction equipment sales based on our 'one team' synergy, while diversifying revenue sources through engines and the aftermarket (AM) business."
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