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HD Hyundai posts $893 million in operating profit in Q1, up 62 percent on year

Published: 01 May. 2025, 08:14

KIM JU-YEON
[email protected]

HD Hyundai's headquarters in Seongnam, Gyeonggi [HD HYUNDAI]

HD Hyundai on Tuesday posted 1.29 trillion won ($893 million) in operating profit in the first quarter of 2025, up 62.1 percent from the previous year and its highest for the quarter since it entered a holding company structure, on the back of improved profitability in the shipbuilding and electric equipment businesses.

The heavy industry conglomerate said in a regulatory filing that it posted a net profit of 777.4 billion won in the January-March period, up 52.9 percent from a year earlier. Revenue rose 3.5 percent to 17.09 trillion won in the same period.

HD Hyundai largely attributed the robust earnings to gains from its shipbuilding affiliate HD Korea Shipbuilding & Offshore Engineering, even as the industry typically sees seasonal slumps in the first quarter.

The shipyard saw increased orders in that quarter and expanded sales of profitable vessels to record a 12.7 percent operating profit margin, its highest for the quarter since it split off in 2019.

HD Hyundai Marine Solution and HD Hyundai Electric also saw increased revenue and operating profits. The latter electrical equipment firm recorded 1 trillion won in revenue in the first quarter for the first time, which HD Hyundai attributes to increased global investment in electric infrastructure.

Demand for power equipment in North America is expected to maintain stable growth, driven by the replacement of aging infrastructure and the expansion of AI-related infrastructure, according to an HD Hyundai Electric official.

Meanwhile, construction machinery affiliate HD Hyundai XiteSolution and energy affiliate HD Hyundai Oilbank both posted lower revenue and operating profit year-on-year.

“Despite the downturn in the energy sector, strong growth in the shipbuilding, offshore engineering and power equipment sectors has driven HD Hyundai’s solid performance,” a HD Hyundai official said.

“We will continue to do our best to become more profitable by pursuing selective orders, developing market-leading technologies and optimizing our processes.”

BY KIM JU-YEON [[email protected]]