'Joseon Led and Power Pushed'... HD Hyundai's Operating Profit Up 46.8% Last Year

Sales Rise 10% to 67.77 Trillion KRW
HD Korea Shipbuilding & Offshore Operating Profit Up 408%

HD Hyundai showed a significant improvement in performance last year, driven by strong growth in its shipbuilding & marine and power equipment sectors.

HD Hyundai announced on the 6th that its consolidated operating profit for last year was tentatively estimated at 2.9832 trillion KRW, a 46.8% increase compared to the previous year. Sales rose 10.5% to 67.7656 trillion KRW, and net profit surged 145.6% to 1.9302 trillion KRW.

Operating profit for the fourth quarter was 878.2 billion KRW, up 145.4% year-on-year. During this period, sales and net profit were 17.0972 trillion KRW and 776.1 billion KRW, respectively.

The company explained that this strong performance was due to a significant improvement in the shipbuilding & marine sector and continued robust growth in the power equipment division. On the other hand, construction machinery and energy sectors showed somewhat sluggish results.

Looking at each business segment, HD Korea Shipbuilding & Offshore, part of the shipbuilding & marine division, led the performance improvement by recording sales of 25.5386 trillion KRW, a 19.9% increase from the previous year, thanks to an expansion in orders for high value-added eco-friendly vessels and increased production efficiency. Operating profit also surged 408% year-on-year to 1.4341 trillion KRW, driven by a profitability-focused selective order strategy.

HD Hyundai Heavy Industries, an affiliate of HD Korea Shipbuilding & Offshore, posted sales and operating profit of 14.4865 trillion KRW and 75.2 billion KRW, respectively. HD Hyundai Samho and HD Hyundai Mipo also recorded strong results with sales of 7.0031 trillion KRW and 4.63 trillion KRW, and operating profits of 723.6 billion KRW and 88.5 billion KRW, respectively, marking robust performance across all affiliates in the shipbuilding & marine sector.

HD Hyundai Marine Solutions achieved sales of 1.7455 trillion KRW, a 22% increase year-on-year, driven by strong orders in its core ship parts service business (AM) and expansion of digital control businesses such as smart ship operation management and automation solutions. Operating profit rose 34.8% year-on-year to 271.7 billion KRW.

HD Hyundai Marine Engine, newly incorporated into the group last year, recorded sales and operating profit of 315.8 billion KRW and 33.2 billion KRW, respectively, up 28.9% and 85.5% year-on-year, thanks to a successful strategy to expand eco-friendly engine products.

In the construction machinery sector, HD Hyundai Site Solutions posted sales of 7.7731 trillion KRW and operating profit of 432.4 billion KRW, down 11.1% and 40.3%, respectively, due to the base effect following an exceptional boom from infrastructure investments by major countries in 2023 and the impact of the global economic downturn. HD Hyundai Site Solutions plans to strengthen its overseas market presence by diversifying sales channels to secure potential demand and launching next-generation new models.

HD Hyundai Oilbank achieved sales of 30.4686 trillion KRW, an 8.4% increase year-on-year, through expanded supply of eco-friendly fuels and improved plant operation efficiency. However, operating profit fell 58.2% to 258 billion KRW. HD Hyundai Oilbank intends to proactively respond to external variables by diversifying crude oil sources and optimizing processes in line with the global increase in petroleum product demand.

HD Hyundai Electric posted sales of 3.3223 trillion KRW and operating profit of 669 billion KRW, benefiting from increased demand for power equipment due to global data center expansion and the spread of artificial intelligence (AI) technology, along with improved profitability through selective order intake. HD Hyundai Electric plans to continue its strong performance by expanding production capacity for 765kV ultra-high voltage transformers through the construction of a new factory on existing land at its Ulsan plant and building a second factory at its Alabama, USA subsidiary.

An HD Hyundai official stated, "In a situation where external uncertainties are intensifying, this year we plan to pursue profitability-focused strategies across all business areas based on a stable business portfolio. With the favorable performance trends continuing in the shipbuilding and power equipment sectors, we will maintain growth by developing eco-friendly technologies and maximizing production efficiency."