HD Hyundai Construction Equipment (267270) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 7.4% year-over-year to KRW 906.8 billion, mainly due to weaker demand in developed markets, despite solid performance in India and Brazil.

• Operating profit dropped 22.3% year-over-year to KRW 41.7 billion, with margin at 4.6%.

• Net profit attributable to owners was KRW 28.5 billion, down 37.9% year-over-year.

• Export sales accounted for 88.2% of total revenue, with construction equipment representing 77.9% of sales.

• The company maintained a strong export focus, with significant exposure to foreign exchange risk, managed through forward contracts.

Financial highlights

• Sequentially, sales rose 14.9% and operating profit increased 18.1% from 4Q24.

• Gross profit margin for Q1 2025 was 19.7%, up from 17.9% in Q1 2024.

• Basic earnings per share for Q1 2025 was KRW 1,613, compared to KRW 2,520 in Q1 2024.

• Cash and cash equivalents at quarter-end were KRW 257.7 billion.

• Profit attributable to owners was up 116.4% sequentially.

Outlook and guidance

• North America and Europe face market uncertainty due to U.S. tariff policies and sluggish demand, but product mix improvements and dealer inventory reductions are ongoing.

• India and Brazil maintain favorable trends, with local production and new product launches supporting growth.

• The global construction equipment market is expected to remain stable in 2025, with a projected rebound in 2026.

• The company plans to continue investments in productivity and new model development, focusing on emerging and advanced markets.

• No specific quantitative guidance was provided for the remainder of 2025.