HD Hyundai Construction Equipment (267270) Q1 2026 earnings summary

Executive summary

• Sales increased 22% year-over-year in 1Q26, driven by strong growth in construction equipment and steady engine division performance.

• EBIT surged 88% year-over-year, reflecting improved profitability and favorable product mix.

• Net profit attributable to owners of parent rose 181% year-over-year to KRW 173.9bn.

• Completed merger with HD Hyundai Infracore Co., Ltd. on January 1, 2026, significantly expanding scale and product portfolio.

• Construction equipment accounted for 79.9% of sales, with export sales comprising 82.4% of total revenue.

Financial highlights

• 1Q26 sales reached KRW 2,304.9bn, up 22.1% year-over-year and 14.8% sequentially.

• EBIT was KRW 190.7bn, up 88.3% year-over-year, with EBIT margin improving to 8.3%.

• Net profit attributable to owners of parent was KRW 173.9bn, up 180.6% year-over-year.

• Total assets at March 31, 2026: KRW 9,297.1bn; total equity: KRW 4,829.8bn.

• Basic EPS for Q1 2026: KRW 3,631.

Outlook and guidance

• Demand in North America for excavators is stagnant, but CTL/ADT demand is rising.

• Europe shows continued recovery, especially in Northern Europe and UK.

• Engine division expects further growth from electronic engines, large generator engines, and defense contracts.

• Continued focus on global market expansion, especially in North America, Europe, and emerging markets.

• Ongoing investments in production capacity, new model development, and eco-friendly technologies.