HD Hyundai (267250) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 21.0% year-over-year but declined 5.4% sequentially due to lower oil prices and seasonal factors impacting major business segments.

• Operating profit dropped 51.0% quarter-over-quarter and 35.4% year-over-year, mainly from oil refining losses despite improved profitability in shipbuilding and electrical equipment.

• Net income fell sharply by 81.3% sequentially and 82.9% year-over-year, with controlling interest turning to a loss.

• Consolidated revenue for the first nine months of 2024 was ₩50.67 trillion, with operating profit of ₩2.11 trillion and net profit attributable to controlling interests of ₩1.15 trillion, reflecting a year-over-year decline in both revenue and profit.

• The group operates across shipbuilding, oil refining, electrical equipment, construction machinery, and robotics, with significant global presence and diversified revenue streams.

Financial highlights

• Q3 2024 revenue: ₩165,991 billion; operating profit: ₩4,315 billion; net income: ₩1,017 billion.

• Revenue for Q3 YTD 2024: ₩50.67 trillion (down from ₩61.33 trillion YTD 2023).

• Operating margin decreased to 2.6% from 5.0% in Q2 2024 and 4.9% in Q3 2023.

• Q3 2024 EPS: ₩4,335 (Q3 2023: ₩3,743).

• Significant negative impact from non-operating items, including foreign exchange losses and interest expenses.

Outlook and guidance

• Shipbuilding and marine solutions segments show continued growth and profitability, while oil refining faces headwinds from weak margins and seasonal demand.

• Construction equipment and site solutions are challenged by global economic slowdown and high interest rates, impacting demand.

• The company expects continued demand for eco-friendly shipbuilding, renewable energy, and electrification solutions, but notes ongoing global economic uncertainty and cost pressures.

• Management maintains a focus on cost control, R&D for green technologies, and expansion in overseas markets.