HD Hyundai Construction Equipment (A267270) Q4 2025 earnings summary

Executive summary

• Sales increased in 2025, driven by strong demand in emerging markets and stable inventories in developed regions.

• EBIT for HCE declined due to one-off costs, including China restructuring, while HDI saw a sharp EBIT rise from higher sales and price increases.

• Net profit returned to profitability for both HCE and HDI, with significant YoY improvements.

Financial highlights

• HCE 2025 sales: KRW 3,776.5 bn (+9.8% YoY); EBIT: KRW 170.9 bn (-10.3% YoY); EBIT margin: 4.5% to 3.5%.

• HDI 2025 sales: KRW 4,547.8 bn (+10.5% YoY); EBIT: KRW 286.4 bn (+55.5% YoY); EBIT margin: 4.5% to 6.3%.

• Net profit for HCE: KRW 87.0 bn (+1.2% YoY); for HDI: KRW 142.6 bn (+31.5% YoY).

• HCE faced higher net financial costs and FX losses; HDI saw reduced net debt and improved profitability.

Outlook and guidance

• 2026 sales target: KRW 8.7–9.0 tn (+6–11% YoY), with construction equipment and engine segments both expected to grow.

• CE market recovery is positive, with focus on regional sales strategies and merger synergies.

• Engine revenue projected to grow 10% YoY, driven by demand in power generation, defense, and industrial sectors.