HD Hyundai Electric (267260) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was KRW 1,036.5 billion, with operating profit of KRW 258.3 billion and net profit of KRW 208.1 billion, reflecting strong export performance and robust order backlog.

• Export sales accounted for 81% of total revenue, with major customers including Xcel Energy, Saudi Electricity Authority, and NextEra Energy.

• Achieved record-high quarterly order intake, driven by strong power equipment demand in North America.

• Order backlog increased significantly, supporting future revenue visibility.

• The company maintains a dominant position in the power equipment sector, focusing on electrification, renewable energy, and smart grid solutions.

Financial highlights

• Q1 2026 sales were KRW 1,036.5bn, up from KRW 995.3bn in Q1 2025 but down 10.9% QoQ; operating profit was KRW 258.3bn, up from KRW 218.2bn YoY but down 19.5% QoQ; OP margin at 24.9%.

• Net profit was KRW 208.1bn, up from KRW 154.1bn YoY but down 15.3% QoQ.

• Orders reached USD 1,797m, up 146.2% QoQ and 34.6% YoY; backlog at USD 7,888m.

• Gross margin was 34.9% (KRW 361.4bn gross profit on KRW 1,036.5bn revenue).

• Basic EPS was KRW 5,781; cash and cash equivalents at period end were KRW 1,222.98bn.

Outlook and guidance

• North America: U.S. grid operators expanding CAPEX for 765kV transmission; AI-related CAPEX forecasts revised upward.

• Middle East: Sustained investment in power infrastructure, with Saudi Arabia planning major substation and transmission projects.

• Europe: EU accelerating grid modernization and clean energy investments; new SF6-free GIS product launch planned.

• The company expects continued growth in electrification, renewable energy, and energy storage markets, with a focus on expanding ESS and smart grid solutions.

• Ongoing investments in production capacity and R&D are aimed at supporting future demand and technological leadership.