HD Hyundai Electric (267260) Q2 2026 earnings summary

Executive summary

• Achieved strong revenue and profitability growth in 2Q26, with sales of power and distribution equipment expanding in both domestic and overseas markets.

• Revenue for the first half of 2026 reached KRW 2,178.3 billion, with exports accounting for 78% of sales and major customers including NextEra Energy and Saudi Electricity Company.

• Operating income was KRW 545.3 billion, and net income attributable to owners of the parent was KRW 414.7 billion, both showing strong year-over-year growth.

• The company maintained a robust order backlog of KRW 12,310.5 billion as of June 30, 2026.

• The board resolved a quarterly dividend of KRW 1,300 per share (totaling KRW 46.8 billion) to be paid on August 27, 2026.

Financial highlights

• Sales reached KRW 1,141.8 bn in 2Q26, up 10.2% QoQ and 26.0% YoY.

• Operating profit was KRW 287.0 bn in 2Q26, up 11.1% QoQ and 37.3% YoY; OP margin improved to 25.1%.

• Gross margin for the half-year was KRW 745.4 billion, with an operating margin of 25.0%.

• Net profit was KRW 206.1 bn in 2Q26, down 0.8% QoQ but up 45.2% YoY.

• Cash and cash equivalents at period-end were KRW 988.1 billion.

Outlook and guidance

• Long-term demand for power equipment remains strong, especially in North America and Europe, driven by data center and AI-related investments.

• The company is expanding into renewable energy, energy storage systems (ESS), and smart grid solutions, leveraging its global R&D network.

• Ongoing investments in production capacity, including new facilities in Ulsan, Cheongju, and the US, are expected to support future growth.

• Middle East outlook supported by new data center and substation projects.

• Marine and data center segments expected to see continued growth due to robust shipbuilding and power infrastructure demand.