HD Hyundai Electric (267260) Q3 2024 earnings summary

Executive summary

• 3Q24 performance decreased sequentially due to seasonality and a strong prior quarter but remained solid year-over-year, with order backlog and profitability of new orders continuing to grow.

• Achieved consolidated sales of 2,506.6 billion KRW for the first nine months of 2024, with 71% from exports and major customers including Saudi Electricity Authority, American Electric Power, and Korea Electric Power Corp.

• Operating profit reached 502.7 billion KRW, and net profit attributable to owners of the parent was 372.3 billion KRW for the same period.

• The company is expanding into energy storage systems (ESS), smart grids, and renewable energy, with significant investments in R&D and production capacity.

Financial highlights

• 3Q24 sales were KRW 788.7bn, down 14.0% QoQ but up 13.6% YoY.

• Operating profit was KRW 163.8bn, down 22.0% QoQ but up 91.8% YoY; OP margin at 20.8%.

• Net income before taxes was KRW 152.6bn, down 27.1% QoQ, up 128.8% YoY; net profit at KRW 116.6bn.

• Revenue for the first nine months of 2024 was 2,506.6 billion KRW, down from 2,702.8 billion KRW year-over-year.

• Export sales accounted for 71% of total revenue.

Outlook and guidance

• North America market outlook remains favorable due to U.S. DOE grid investments and rising power demand from AI and data centers.

• Middle East focus on LNG facility investments and high-spec transformer orders; market diversification ongoing.

• The company expects continued growth in global electrification, renewable energy, and smart grid markets.

• Plans to expand ESS and power conversion businesses internationally, leveraging recent domestic project completions.

• Ongoing investments in production capacity and R&D to support new business lines and maintain competitiveness.