Shipbuilding and Offshore, Power Equipment, and Construction Machinery Divisions
Major Businesses Achieve Solid Performance
On July 31, HD Hyundai announced through a public disclosure that its consolidated sales for the second quarter reached KRW 17.2111 trillion, with an operating profit of KRW 1.1389 trillion. Compared to the same period last year, sales decreased by 2.0%, while operating profit increased by 29.4%.
This result was due to improved profitability in the shipbuilding division and solid performance across major businesses such as power equipment and construction machinery. For the first half of the year, HD Hyundai's consolidated cumulative sales amounted to KRW 34.298 trillion, with an operating profit of KRW 2.4253 trillion.
Breaking down the second quarter results by major business segments: HD Korea Shipbuilding & Offshore Engineering, in the shipbuilding and offshore division, recorded sales of KRW 7.4284 trillion, a 12.3% increase from the same period last year. This was driven by improved productivity and a higher proportion of high-priced vessel sales. Operating profit surged by 153.3% to KRW 953.6 billion.
HD Hyundai Marine Solution saw growth in its core After Market (AM) business and digital solutions segment, supported by a boom in the new ship market and strengthened environmental regulations. Sales increased by 6.8% year-on-year to KRW 467.7 billion, and operating profit rose by 16.9% to KRW 83 billion.
HD Hyundai Site Solution, in the construction machinery division, posted sales of KRW 2.14 trillion, a 6.3% increase from the same period last year, due to expanded infrastructure investment and resource development demand in emerging markets. However, operating profit decreased by 10.6% year-on-year to KRW 151.4 billion, affected by one-off costs such as the integration of the Chinese manufacturing subsidiary.
HD Hyundai Oilbank, in the energy and refining division, recorded sales of KRW 6.5417 trillion and an operating loss of KRW 241.3 billion. As oil prices and exchange rates declined, sales fell by 16.6% compared to the same period last year, and operating profit turned to a loss. HD Hyundai Oilbank plans to enhance profitability in the second half of the year by focusing on stable plant operations, process optimization, and expanding a portfolio centered on high-value, eco-friendly products such as biofuels, in line with improvements in the refining market.
HD Hyundai Electric reported sales of KRW 906.2 billion and an operating profit of KRW 209.1 billion. Due to a temporary increase in energy storage system (ESS) sales last year, both sales and operating profit saw a slight decline compared to the previous year. However, amid continued global investment in power infrastructure, the operating profit margin reached 23.1%.
A representative from HD Hyundai stated, "While profitability in the shipbuilding and offshore division continues to expand, stable performance in the power equipment and construction machinery divisions is being maintained. In the energy and refining division, we will also enhance profitability by increasing production efficiency and expanding the production and sales of high-value products."
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