The results have raised expectations that the group is on track to achieve its goal of reaching 100 trillion won ($67.2 billion) in annual sales by 2030, as its selective order strategy focused on eco-friendly vessels and growing demand for power infrastructure in North America begin to translate into stronger profitability.
HD Hyundai said Wednesday in a regulatory filing that it logged 19.6 trillion won in consolidated sales and 2.83 trillion won in operating profit in the first quarter. Sales rose 14.7 percent from a year earlier, while operating profit surged 120.4 percent. It marked the group’s largest quarterly operating profit since its transition to a holding company structure in 2017.
The shipbuilding division remained the biggest driver of earnings, accounting for 64 percent of the group’s total operating profit.
HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding subholding company, posted 8.14 trillion won in sales and 1.36 trillion won in operating profit, with an operating margin of 16.7 percent. Sales increased 20.2 percent from a year earlier, while operating profit rose 57.8 percent, helped by a higher share of high-priced vessels such as liquefied natural gas carriers and increased delivery volumes through improved production efficiency.
HD Hyundai Marine Solution also reported solid growth, backed by its core aftermarket business and higher sales from its bunkering operations. Sales rose 18.3 percent year-on-year to 574.6 billion won, while operating profit climbed 12.5 percent to 93.4 billion won. Its operating margin stood at 16.3 percent.
HD Hyundai Electric, the group’s power equipment unit, continued to benefit from growing investment in power grids in North America. The company recorded 1.04 trillion won in sales and 258.3 billion won in operating profit. HD Hyundai expects growth momentum to strengthen further once expansion work at its Ulsan plant and North American production subsidiary is completed.
HD Hyundai Site Solutions, the group’s construction machinery unit, posted 2.38 trillion won in sales and 207.5 billion won in operating profit, up 21.2 percent and 72.8 percent, respectively, from a year earlier. The gains were driven by a recovery in global demand and accelerated growth in its industrial engine business.
In the energy sector, HD Hyundai Oilbank reported 7.72 trillion won in sales and 933.5 billion won in operating profit for the first quarter, despite an uncertain business environment marked by greater oil price volatility amid deepening geopolitical risks.
Market watchers said the latest results reflect the group’s selective strategy focused on high-margin businesses under Chairman Chung Ki-sun’s leadership. Since Chung took the helm, HD Hyundai has been strengthening its future business portfolio, with those efforts now beginning to produce visible results.
“Profitability improved across all business areas, driving strong earnings,” an HD Hyundai official said. “We will continue to make every effort to expand profitability through selective orders, technology development and process optimization.”
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