HD Hyundai Construction Equipment (267270) Q4 2024 earnings summary

Executive summary

• 4Q24 sales declined 6.7% year-over-year due to delayed demand recovery in developed and emerging markets, despite improved performance in India and Brazil.

• Operating profit rose 31.4% year-over-year, benefiting from a low comparison base due to one-off costs in 4Q23.

• Net profit turned to a loss of KRW 1.9bn in 4Q24, compared to a profit of KRW 11.5bn in 4Q23.

Financial highlights

• 4Q24 sales: KRW 789.1bn (-6.7% YoY, -3.4% QoQ); operating profit: KRW 35.3bn (+31.4% YoY, -18.0% QoQ); OP margin: 4.5%.

• Non-operating profit was negative at KRW -28.2bn, impacted by foreign exchange and other items.

• Net profit attributable to owners turned to a loss of KRW 1.9bn.

Outlook and guidance

• 2025 sales forecast: KRW 3,747bn (+9% YoY); operating profit: KRW 194.6bn; OPM: 5.2%.

• Sales growth expected through improved market position, though profit margin may decline slightly due to continued market weakness and price competition.

• Strategic focus on strengthening internal management, risk management, and competitive advantage for market recovery.