HD Hyundai Electric Q1 Operating Profit 46.3 Billion KRW... Up 177% YoY

Highest Operating Profit Margin by Quarter
Strong Performance in North America and Middle East Markets Continues
Annual Order Target Raised by 35%

Power equipment and energy solutions company HD Hyundai Electric announced on the 24th that its operating profit for the first quarter of this year reached 46.3 billion KRW, a 177.2% increase compared to the previous year, driven by selective order intake and price increases in mass-produced products.

The operating profit margin was 8.1%, marking the highest quarterly figure ever recorded. This is the first time HD Hyundai Electric has surpassed an 8% operating profit margin since its establishment as an independent corporation in 2017.

Sales rose 61.6% during the same period to 568.5 billion KRW, supported by a strong global transmission and distribution market. Sales of power equipment and shipboard electrical components increased by 71.4% and 88.8%, respectively, compared to the previous year, mainly driven by solid demand in the Middle East and North American markets.

Orders in the first quarter increased by 21.3% from the previous quarter to 796 million USD, resulting in an order backlog of 3.05 billion USD, up 45.2% from a year ago.

Due to the boom in the North American transmission and distribution market and expanded infrastructure investments by Middle Eastern countries, demand for power equipment such as transformers continues to remain strong. Reflecting this favorable market trend, HD Hyundai Electric has raised its annual order target by 35%, from 1.948 billion USD (approximately 2.6 trillion KRW) to 2.634 billion USD (approximately 3.5 trillion KRW).

An HD Hyundai Electric official stated, “In the first quarter of this year, we recorded solid business performance not only in order-based products like transformers but also in mass-produced products such as distribution equipment. We will continue to diversify our customers and markets in line with the global trend of expanding eco-friendly and renewable energy investments, and strive to improve profitability.”