HD Hyundai Construction Equipment (267270) investor relations material

Executive summary

• Sales increased by 18.2% year-over-year to KRW 2,434.2 billion in 2Q26, driven by strong growth in construction equipment and steady engine division performance.

• EBIT surged 91.9% year-over-year to KRW 248.9 billion, with margin improvement to 10.2% from 6.3% a year ago.

• Net profit rose dramatically by 1,046.2% year-over-year to KRW 180.7 billion, reflecting improved profitability and lower financial costs.

Financial highlights

• Construction equipment sales grew 23.8% year-over-year to KRW 1,823.4 billion, with notable regional gains in MEA (+51.4%), LA (+29.9%), and EU (+26.2%).

• Engine division sales increased 4.6% year-over-year to KRW 386.1 billion, supported by higher industrial engine volumes.

• EBIT margin improved to 10.2%, up 3.9 percentage points year-over-year.

• Net financial cost decreased to KRW -14.3 billion, and foreign exchange gains contributed positively.

Outlook and guidance

• Global demand recovery expected to continue, with infrastructure and mining driving equipment sales.

• North America and Europe face mixed outlooks due to high interest rates and tariff uncertainties, but rental and data center investments support demand.

• APAC, MEA, and LA regions benefit from mining and infrastructure investments, though geopolitical risks persist.

• Engine division anticipates accelerated power generation engine sales in 2H26 and expanded defense exports.