HD Hyundai Electric (267260) Q1 2025 earnings summary

Executive summary

• Achieved record high quarterly revenue in 1Q25, with revenue of KRW 1,014.7 billion, operating profit of KRW 218.2 billion, and net profit before taxes of KRW 153.4 billion, reflecting strong YoY and QoQ growth and robust export performance.

• Export sales accounted for 80% of total revenue, with major customers including Saudi Electricity, NextEra Energy, and Florida Power & Light.

• Continued growth in new orders and order backlog, reflecting strong demand and order seasonality.

• The company is expanding in energy storage systems, renewable energy, and smart grid solutions, leveraging recent acquisitions and R&D investments.

Financial highlights

• 1Q25 sales reached KRW 1,014.7 billion, up 24.4% QoQ and 26.7% YoY, with operating profit at KRW 218.2 billion (up 31.2% QoQ and 69.4% YoY) and net profit before taxes at KRW 153.4 billion (up 23.8% QoQ and 64.2% YoY).

• Gross margin improved to 33.1% from 25.0% in Q1 2024.

• Order intake was USD 1,438 million, up 68.8% QoQ; order backlog reached USD 5,076 million, up 11.1% QoQ.

• Cash and cash equivalents at period end: KRW 792.1 billion.

Outlook and guidance

• U.S. energy policy expected to accelerate power grid expansion and support rising electricity demand.

• Middle East demand to rise with Saudi Vision 2030 and focus on renewable energy and grid expansion.

• The company expects continued growth in global electrification, renewable energy, and ESS markets, focusing on overseas expansion, especially in the US and Europe.

• Ongoing investments in production capacity and R&D are aimed at supporting new business lines and maintaining technological leadership.

• Marine segment outlook positive due to regulatory changes and competitive advantage for eco-friendly shipbuilders.