HD Hyundai (267250) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 14.7% year-over-year to KRW 19.6 trillion, driven by strong performance in shipbuilding, refining, and construction machinery.

• Operating income surged to KRW 2.83 trillion, up 43.8% sequentially and 120.4% year-over-year, with notable improvements in shipbuilding, electric, construction machinery, and refining.

• Net income attributable to owners of the parent was KRW 781.2 billion, up 160.2% year-over-year, reflecting robust operational gains and improved non-operating results.

• The group operates globally across shipbuilding, oil refining, electrical/electronics, construction machinery, ship services, and other industrial sectors.

• Maintains strong liquidity with cash and cash equivalents at KRW 9.52 trillion and a debt-to-equity ratio of 168.4%.

Financial highlights

• Q1 2026 revenue: KRW 19.6 trillion; operating income: KRW 2.83 trillion; net income: KRW 781.2 billion.

• Operating margin improved to 14.5%, up 4.0 percentage points sequentially and 7.0 points year-over-year.

• Basic EPS for Q1 2026 was KRW 11,054, compared to KRW 3,101 in Q1 2025.

• Cash flows from operating activities were KRW 2.38 trillion, with investing activities at KRW 661 billion.

• Significant positive swing in non-operating income, mainly from foreign exchange gains.

Outlook and guidance

• Shipbuilding expects continued growth, targeting annual revenue of KRW 8.7–9 trillion and operating margin of 5–7%, supported by strong order backlogs and demand for eco-friendly vessels.

• Oil refining anticipates ongoing volatility and high prices due to geopolitical risks, with gasoline and diesel cracks remaining strong.

• The group is investing in renewable energy, digital transformation, and smart manufacturing to support future growth.

• Construction machinery anticipates ongoing recovery, focusing on regional strategies, merger synergies, and electrification.

• Electric division projects sustained growth from power infrastructure demand and data center investments.