HD Hyundai reported its highest quarterly operating profit since adopting a holding company structure in 2017, driven by broad-based improvement across shipbuilding, refining, construction equipment, and power equipment businesses. The diversified results underscore how multiple industrial cycles — from a global shipbuilding upcycle to elevated energy and grid infrastructure demand — are simultaneously working in the conglomerate's favor.

Under consolidated accounting for the second quarter, the company posted revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won, announced on the 31st. Revenue rose 30.2% year-on-year while operating profit surged 262.2%. Compared with the preceding quarter, revenue grew 14.3% and operating profit advanced 45.5%.

The results significantly exceeded market forecasts. Q2 revenue surpassed the securities consensus of 20.013 trillion won compiled by FnGuide by 12%, while operating profit beat the consensus estimate of 2.2197 trillion won by 85.8%. Net profit reached 3.1732 trillion won, a 550.2% increase from a year earlier.

Shipbuilding and Offshore

HD Korea Shipbuilding & Offshore Engineering posted revenue of 8.927 trillion won and operating profit of 1.6451 trillion won, increases of 20.2% and 72.5% respectively compared with the prior year. The gains were attributed to productivity improvements and increased sales of higher-margin vessels. South Korean shipbuilders have been operating with orderbooks extending several years ahead amid a global shipbuilding upcycle, with newbuilding prices near record levels as shipowners race to order eco-friendly vessels to meet tightening international emissions regulations. The company intends to continue a strategy of selective order-taking focused on eco-friendly ships to further enhance profitability.

HD Hyundai Marine Solution recorded revenue of 580.4 billion won and operating profit of 97.6 billion won, up 24.1% and 17.6% respectively year-on-year. Growth was evenly distributed across its aftermarket business, which supplies ship parts and services, as well as green retrofits and digital solutions.

Construction Equipment

HD Hyundai XiteSolution posted revenue of 2.5235 trillion won and operating profit of 272 billion won, supported by a recovery in global markets, increased sales of new excavators, and higher revenue from industrial and defense engines. Revenue rose 17.9% and operating profit increased 79.6% from a year earlier.

Energy

HD Hyundai Oilbank recorded revenue of 9.4774 trillion won and operating profit of 1.8241 trillion won. Revenue increased 44.9% year-on-year and operating profit swung to a profit. Despite continued volatility in global oil prices and uncertainty in crude supply, improved profitability in base oil and petrochemicals underpinned the results. Global refining margins have been supported by resilient transportation fuel demand and constrained refining capacity in some regions.

Power Equipment

HD Hyundai Electric posted revenue of 1.1418 trillion won and operating profit of 287 billion won, increases of 26% and 37.3% respectively from a year earlier, driven by higher sales in the power distribution business and improved profitability in overseas markets. Global demand for transformers and grid equipment has surged as countries invest in power grid modernization, electrification, and data center infrastructure, creating a multi-year supply tightness that has benefited manufacturers across the sector.

First-Half Cumulative Results

Cumulative first-half revenue totaled 42.0113 trillion won with operating profit of 6.9594 trillion won. Compared with the same period a year earlier, revenue rose 22.5% and operating profit increased 187%.

An HD Hyundai official stated: "In the second quarter, we achieved improved results across all business areas, including shipbuilding, construction equipment, refining, and power equipment, allowing us to further solidify our business structure." The official added, "We will focus on securing profitability by expanding selective orders centered on high-value-added vessels, cultivating new markets, and improving our product mix."

Source: ChosunBiz