HD Hyundai Electric (267260) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue and operating profit, driven by global power grid upcycle and strong order backlog.

• Order intake decreased due to a high base in the previous quarter, but backlog continued to grow.

Financial highlights

• 2Q24 sales reached KRW 916.9 bn, up 14.5% QoQ and 42.7% YoY.

• Operating profit was KRW 210.1 bn, up 63.0% QoQ and 257.1% YoY; OP margin rose to 22.9%.

• Net profit before taxes was KRW 161.2 bn, up 72.6% QoQ and 331.0% YoY.

• Order intake was USD 880 mil, down 38.8% QoQ and 28.6% YoY; backlog increased to USD 5,252 mil.

Outlook and guidance

• Extended delivery periods in North America prompt utilities to advance orders and diversify suppliers.

• Middle East focus on market diversification and package orders for large transformers and circuit breakers.

• Marine segment expects stable demand from LNG vessel orders and environmental regulations.