HD Hyundai Electric (267260) Q2 2025 earnings summary

Executive summary

• 2Q25 revenue declined YoY and QoQ, but operating profit margin reached a record high due to improved profitability and anti-dumping duty reversals.

• Revenue for H1 2025 reached KRW 1,920.9 billion, with operating income of KRW 427.3 billion and net income attributable to owners of the parent at KRW 296.5 billion.

• Export sales accounted for 75% of total revenue, with major customers including Saudi Electricity, Xcel Energy, Florida Power & Light, American Electric Power, and NextEra Energy.

• Solid new orders and backlog growth continued, with backlog at KRW 8,711.5 billion as of June 2025.

Financial highlights

• 2Q25 sales were KRW 906.2bn, down 1.2% YoY and 10.7% QoQ; H1 2025 revenue was KRW 1,920.9bn.

• Operating profit was KRW 209.1bn in 2Q25 and KRW 427.3bn for H1 2025; OP margin improved to 23.1%.

• Net profit was KRW 141.9bn in 2Q25 and KRW 296.5bn for H1 2025.

• Gross margin for H1 2025 was 32.8%.

• Cash and cash equivalents at June 2025: KRW 699.3bn.

Outlook and guidance

• U.S. energy infrastructure investment and high transformer/circuit breaker prices support a favorable North American outlook.

• Middle East outlook driven by Saudi AI fund and focus on non-localized projects.

• European demand expected to remain strong due to renewable energy and regulatory changes.

• The company is expanding into ESS, renewable energy, and smart grid solutions, focusing on global markets.

• Ongoing investments in production capacity and R&D are expected to support future growth.