HD Hyundai Construction Equipment (A267270) Q1 2025 earnings summary

Executive summary

• 1Q25 sales declined 7.4% year-over-year to KRW 906.8 bn, mainly due to weaker demand in developed markets, despite solid performance in India and Brazil.

• Operating profit dropped 22.3% year-over-year to KRW 41.7 bn, with margin at 4.6%.

• Net profit fell 44.0% year-over-year to KRW 25.7 bn.

Financial highlights

• Sequentially, sales rose 14.9% and operating profit increased 18.1% from 4Q24.

• Non-operating profit was negative at KRW -2.9 bn, impacted by interest income and foreign exchange gains.

• Profit attributable to owners was KRW 28.5 bn, down 37.9% year-over-year but up 116.4% sequentially.

Outlook and guidance

• North America and Europe face market uncertainty due to U.S. tariff policies and sluggish demand, but product mix improvements and dealer inventory reductions are ongoing.

• India and Brazil maintain favorable trends, with local production and new product launches supporting growth.

• Emerging markets show mixed trends, with demand recovery in Asia/Africa and continued regional volatility.

• China sees strong demand recovery, especially for wheeled excavators, driven by stimulus and equipment replacement.