HD Construction Equipment Reports 92% Surge in Q2 Operating Profit... Achieves Double-Digit Margin for First Time Since Integration

Sales Reach KRW 2.4342 Trillion, Operating Profit at KRW 248.9 Billion
Growth in Both Construction Equipment and Defense Engines
Expanding Business with New Gunsan Plant

HD Construction Equipment announced on July 29 that it posted consolidated sales of KRW 2.4342 trillion and operating profit of KRW 248.9 billion in the second quarter of this year. Compared to the same period last year, sales increased by 18.2%, and operating profit jumped by 92%.

The operating margin reached 10.2%, marking a double-digit figure for the first time since the launch of the integrated corporation. Recovery in the global construction equipment market, a sales strategy focused on profitability, and increased sales of industrial and defense engines drove the improvement in results.

Sales in the construction equipment division rose by 22% year-on-year to KRW 2.0182 trillion. The operating margin also improved significantly from 4.6% last year to 9.9%.

The expansion of next-generation excavator model sales, released last year, in advanced markets such as North America and Europe, as well as in the domestic market, led to sales growth of 18% and 25% respectively. Increased sales of medium and large equipment, which are highly profitable, also contributed to improved performance.

By region, Latin America grew by 29.9%, driven by rising demand for mining equipment, while the Middle East and Africa recorded a high growth rate of 51.4% due to the expansion of gold mine projects. Sales in India rose by 22.1% owing to increased infrastructure investment, and China saw a 14.1% growth thanks to higher social overhead capital (SOC) investment.

The engine division recorded sales of KRW 386.1 billion, supported by expanded sales of industrial engines and increased supply of defense engines for K2 tanks. This represents a 5% increase compared to the same period last year, with an operating margin of 15.3% achieved.

A representative of HD Construction Equipment stated, "The recovery of the global market and a sales strategy centered on next-generation models and high-profit products led to improved performance." He added, "We will strengthen our response to the defense and power generation engine markets based on the new Gunsan engine plant, diversify our business portfolio, and expand the foundation for growth."

This content was produced with the assistance of AI translation services.