HD Hyundai (267250.KS) posted operating profit of 2.8 trillion won in the first quarter, the highest quarterly figure since its transition to a holding company structure in 2017, driven by improved profitability across its shipbuilding, construction equipment, refining and electrical equipment divisions. The result is more than double the figure from the same period last year and exceeds the consensus estimate from major brokerages of 1.803 trillion won by about 1 trillion won.
HD Hyundai announced Sunday that its consolidated first-quarter operating profit reached 2.8348 trillion won, up 120.4% from a year earlier. Revenue during the same period rose 14.7% to 19.6019 trillion won. By segment, HD Korea Shipbuilding & Offshore Engineering (009540.KS) at 1.356 trillion won and HD Hyundai Oilbank at 933.5 billion won led the group's performance. The combined operating profit of the two units accounted for 80% of the group total.
HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for the shipbuilding and offshore division, saw operating profit rise 57.8% from a year earlier, supported by an increased share of revenue from high-margin eco-friendly vessels. With productivity gains across all business divisions, the operating margin reached 16.7%.
HD Hyundai Oilbank, the energy unit, posted a 2,902% surge in operating profit as oil prices climbed on the Middle East crisis and inventory-related gains were realized. Beyond refining and lubricants, which had delivered steady results, the petrochemical business also swung to a modest profit. "We plan to continue stabilizing raw material procurement by securing alternative crude sources, maintaining stable plant operations and pursuing process efficiency," an HD Hyundai official said.
In addition, HD Hyundai Site Solution, the intermediate holding company for the construction equipment division, posted 207.5 billion won in first-quarter operating profit, while HD Hyundai Electric recorded 258.3 billion won, with both units contributing more than 200 billion won each to group earnings. HD Hyundai Electric, in particular, expects growth to accelerate further on the back of continued demand for power infrastructure supporting artificial intelligence (AI) data centers in the United States, along with expansions at its Ulsan plant and North American production subsidiary.
HD Hyundai Robotics, a future growth business, failed to turn a profit, posting an operating loss of 5 billion won on expanded research and development (R&D) spending.
