HD Hyundai Electric (267260) investor relations material

Executive summary

• 3Q26 revenue reached a quarterly record of KRW 1,179.9bn, up 18.5% YoY; operating margin eased to 24.1% as domestic sales mix increased.

• Orders were USD 980m, down 31.9% QoQ on a high 1H26 base; backlog rose to USD 8,843m, up 26.6% YoY.

• Distribution business grew strongly, while non-operating losses contributed to lower net income QoQ and YoY.

Financial highlights

• Sales were KRW 1,179.9bn, up 3.3% QoQ and 18.5% YoY; operating profit was KRW 284.5bn, down 0.9% QoQ and up 15.1% YoY.

• Operating margin was 24.1%, down 1.0 percentage point QoQ and 0.7 percentage point YoY.

• Pretax income was KRW 240.8bn; net profit was KRW 184.2bn and controlling shareholder net income was KRW 183.3bn.

• Orders totaled USD 980m, down 19.1% YoY; backlog was USD 8,843m, up 4.2% QoQ and 26.6% YoY.

Outlook and guidance

• North American supply-contract discussions with multiple Big Tech companies continue, with agreements expected from 4Q26; initial POs began under a long-term supply agreement with Big Tech A.

• Middle East order growth will focus selectively on follow-on Saudi HVDC projects; distribution demand is expected to improve as licensing and distributor orders resume from 4Q.

• European order visibility is expected to improve as UK Gate 2 project schedules are finalized; strong demand is expected from data-center expansion.

• Marine generator orders are expected to increase, with orders for previously secured AI data-center engine projects expected in 4Q26–1Q27.

• Chungju Phase II targets KRW 250bn in annual revenue and a KRW 1.1tn distribution-sales target in 2028.