HD Hyundai Electric Q3 operating profit rises 15.1% to 284.5 billion won
In short
HD Hyundai Electric said on 27 October that its third-quarter consolidated revenue was 1.1799 trillion won, up 18.5% from a year earlier, and operating profit was 284.5 billion won, up 15.1%. Net profit fell 3.6% to 184.2 billion won. The company also announced a 198 billion won second-phase investment in its Cheongju distribution campus.
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HD Hyundai Electric, a KOSPI-listed company, disclosed on 27 October its provisional third-quarter consolidated results. Revenue was 1.1799 trillion won, up 18.5% from a year earlier, and operating profit was 284.5 billion won, up 15.1%. Net profit was 184.2 billion won, down 3.6%. Compared with the previous quarter, revenue rose 3.3%, while operating profit fell 0.9% and net profit fell 10.6%, ZDNet Korea and Newsis reported. [ 1 , 2 , 3 , 4 ]
Yonhap said operating profit was 7% below the 305.9 billion won market forecast compiled by Yonhap Infomax. The operating margin was 24.1%. Bloter reported that this was 0.7 percentage points below the 24.8% of a year earlier because the domestic share of revenue rose, and that a foreign-exchange-related loss of 47.9 billion won in non-operating items weighed on net profit. Bloter and Korea Economic Daily said quarterly revenue was the highest on record. [ 1 , 5 , 9 , 10 ]
Revenue in the distribution equipment and new business segment rose 85.8% from a year earlier, which Bloter put at 325.1 billion won. The outlets cited transformer demand centred on the semiconductor industry, higher distribution equipment sales in North America and revenue from the battery energy storage project at Anjwa island in Sinan, ordered in December last year. Bloter put that project's revenue at 125 billion won. Revenue in rotating machinery rose 16.5% on domestic demand. On profit, the outlets cited better profitability for North American power transformers and Middle East high-voltage circuit breakers. [ 5 , 6 , 7 , 9 ]
Third-quarter orders were 980 million dollars, down 19.1% from a year earlier, which the reports attribute to a high base after large first-half orders of 3.231 billion dollars. The order backlog at the end of the quarter was 8.843 billion dollars, up 4.2% from the previous quarter. Bloter said this was 26.6% higher than a year earlier. [ 5 , 6 , 7 , 9 ]
For the first three quarters, cumulative revenue was 3.3582 trillion won, up 15.2%, cumulative operating profit was 829.8 billion won, up 23.0%, and cumulative net profit was 598.0 billion won, up 22.9%, Newsis reported. [ 4 ]
The company also disclosed phase two of its Cheongju distribution campus, with 198 billion won to be invested over 26 months to build a distribution equipment production cluster and expand capacity. It said the investment responds to growing large power infrastructure projects centred on AI data centres and more package orders for several types of distribution equipment, and expects annual revenue to rise by 250 billion won. A company official said long-term package contracts covering power transformers and distribution equipment are growing, especially among North American big tech companies. Bloter added that the first facility is planned for July 2028 and the second for June 2029. [ 5 , 6 , 7 , 9 ]
Bloter reported that the company decided on a cash dividend of 1,300 won per common share, about 46.8 billion won in total, with a record date of 11 November and payment planned for 26 November. This is 31.6% below the 1,900 won of the same period last year. A company official told Bloter the year-end dividend is not yet set but that the annual dividend is expected to exceed last year's. [ 9 ]
Why it matters
Business outlets tie the growth to demand from the semiconductor industry, the North American market and AI data centres. The company said the Cheongju investment is meant to meet that demand and expected it to add 250 billion won in annual revenue.
Key facts
- Third-quarter consolidated revenue was 1.1799 trillion won, up 18.5% from a year earlier; operating profit was 284.5 billion won, up 15.1%. [ 1 , 2 , 3 , 4 ]
- Net profit was 184.2 billion won, down 3.6% from a year earlier. [ 1 , 3 , 4 ]
- Yonhap said operating profit was 7% below the 305.9 billion won market forecast compiled by Yonhap Infomax. [ 1 ]
- The operating margin was 24.1%. [ 5 , 6 , 7 , 10 ]
- Revenue in the distribution equipment and new business segment rose 85.8% from a year earlier; rotating machinery revenue rose 16.5%. [ 5 , 6 , 7 ]
- Third-quarter orders were 980 million dollars, down 19.1%; the order backlog at the end of the quarter was 8.843 billion dollars, up 4.2% from the previous quarter. [ 5 , 6 , 7 ]
- The company plans to invest 198 billion won over 26 months in phase two of its Cheongju distribution campus. [ 5 , 6 , 7 ]
- The company decided on a cash dividend of 1,300 won per common share, with a record date of 11 November and payment planned for 26 November. [ 9 ]
Confirmed by several sources
- HD Hyundai Electric disclosed on 27 October third-quarter consolidated revenue of 1.1799 trillion won (up 18.5%) and operating profit of 284.5 billion won (up 15.1%). [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- Net profit fell 3.6% from a year earlier to 184.2 billion won. [ 1 , 3 , 4 ]
- Distribution equipment and new business revenue rose 85.8%, helped by transformer demand in the semiconductor industry, higher North American sales and revenue from the Anjwa island battery energy storage project ordered in December last year. [ 5 , 6 , 7 , 9 ]
- Third-quarter orders fell 19.1% to 980 million dollars, which the reports link to a high base from large orders in the first half. [ 5 , 6 , 7 , 9 ]
- The company disclosed a 198 billion won investment over 26 months in phase two of the Cheongju distribution campus, expected to add 250 billion won in annual revenue. [ 5 , 6 , 7 , 9 ]
- Quarterly revenue was the highest on record, and the operating margin fell slightly because the domestic share of revenue rose. [ 9 , 10 ]
Still unclear
- Why net profit fell while operating profit rose. Only one outlet gives a reason: Bloter reported a 47.9 billion won foreign-exchange-related loss in non-operating items.
- Whether the full-year dividend will exceed last year's. Only Bloter reports this, citing a company official who said the year-end dividend is not yet set but the annual dividend is expected to be higher than last year.
- Timing of the Cheongju facilities and the new Ulsan plant. Only Bloter gives the dates: first facility in July 2028, second in June 2029, and the Ulsan plant in full operation next month.
What local media are saying
Timeline, local time
- Yonhap reports the third-quarter figures disclosed on 27 October. [ 1 ]
- Newsis publishes a flash report on revenue and operating profit. [ 2 ]
- ZDNet Korea reports segment results, orders and the Cheongju investment plan. [ 5 ]
- Newsis and Asia Economy also report segment results, orders and the Cheongju investment plan. [ 6 , 7 ]
- Yonhap publishes a fuller report on growth in distribution equipment. [ 8 ]
- Bloter and Korea Economic Daily report on the results, the investment and, for Bloter, the dividend. [ 9 , 10 ]