HD Hyundai (A267250) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 4.6% sequentially and 14.7% year-over-year, driven by strong performance across core businesses, especially shipbuilding and refining.

• Operating income surged 43.8% from the previous quarter and 120.4% year-over-year, with notable improvements in shipbuilding, electric, construction machinery, and refining.

• Net income increased 42.1% sequentially and 160.2% year-over-year, reflecting robust operational gains and improved non-operating results.

Financial highlights

• Q1 2026 revenue: ₩196,019 billion; operating income: ₩28,348 billion; net income: ₩20,230 billion.

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

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

• Cash and cash equivalents increased to ₩95,233 billion at Q1 2026 end.

Outlook and guidance

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

• Shipbuilding maintains a solid order pipeline, targeting annual revenue of ₩8.7–9 trillion and operating margin of 5–7%.

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

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

• Marine solutions and robotics divisions expect growth from green engine demand and automation trends.