HD Hyundai Construction Equipment (267270) Q2 2026 earnings summary

Executive summary

• Sales increased by 18.2% year-over-year to KRW 2,434.2 billion in 2Q26, driven by strong growth in construction equipment and steady engine division performance.

• EBIT surged 91.9% year-over-year to KRW 248.9 billion, with margin improvement to 10.2% from 6.3% a year ago.

• Net profit rose dramatically by 1,046.2% year-over-year to KRW 180.7 billion, reflecting improved profitability and lower financial costs.

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

• The group now includes 25 consolidated subsidiaries, with major global operations in construction equipment and engines.

Financial highlights

• Consolidated revenue for H1 2026 reached KRW 4,739 billion, up sharply from KRW 1,875 billion in H1 2025 due to the merger.

• Operating income for H1 2026 was KRW 440 billion, compared to KRW 82 billion in H1 2025.

• Net income attributable to owners for H1 2026 was KRW 354 billion, up from KRW 33 billion in H1 2025.

• Construction equipment sales grew 23.8% year-over-year to KRW 1,823.4 billion, with notable regional gains in MEA (+51.4%), LA (+29.9%), and EU (+26.2%).

• Engine division sales increased 4.6% year-over-year to KRW 386.1 billion, supported by higher industrial engine volumes.

Outlook and guidance

• Global demand recovery expected to continue, with infrastructure and mining driving equipment sales.

• The company expects continued growth in global construction equipment demand, especially in emerging markets.

• Ongoing investments in production capacity and new product development are planned, with a focus on eco-friendly and high-efficiency equipment.

• Management targets a dividend payout ratio of at least 30% of separate net income, subject to investment and cash flow needs.

• Engine division anticipates accelerated power generation engine sales in 2H26 and expanded defense exports.