Fact Summary
HD Hyundai Electric posted Q1 2026 revenue of KRW 1,036.5 billion (+2.1% YoY, -10.9% QoQ) and operating profit of KRW 258.3 billion (+18.4% YoY, operating margin 24.9%). Q1 new orders totaled USD 1.798 billion (+34.6% YoY), achieving 42.6% of the annual order target, and the order backlog stood at USD 7.888 billion, up +17.2% from year-end. Per an amended disclosure on 2026-07-06, the 2026 annual order target was raised 22.8%, from USD 4.222 billion to USD 5.185 billion. As of 2026-03-31, the largest shareholder HD Hyundai Co., Ltd. held a 35.60% stake (37.27% combined with related parties).
Context Note
The closing price on the analysis reference date (2026-07-16) was KRW 787,000, down -3.08% from the prior day's KRW 812,000. On the same day, the KOSPI plunged -6.37% as a program-trading sidecar was triggered amid US-driven concerns over the semiconductor industry (a Morgan Stanley report, China's CXMT listing issue), with large-cap semiconductor stocks such as Samsung Electronics and SK Hynix falling in tandem, but no article addressing a reason specific to this company's decline was found via search. In the preceding two weeks, order-related disclosures continued, including a long-term data-center supply contract (KRW 1,121.2 billion) on 2026-07-02 and the +22.8% annual order-target increase on 2026-07-06.
Business Overview · Q1 Results
| Segment | Q1 2026 Revenue | YoY | Notes |
|---|---|---|---|
| Power Equipment | KRW 564.0 billion | +21.6% | Growth in North America power transformer sales |
| Rotating Machinery | KRW 184.8 billion | +10.8% | Strong marine equipment sales |
| Distribution Equipment | KRW 135.9 billion | -24.2% | Delayed deliveries due to base effect and Middle East geopolitical factors |
As of 2026-04-28 report (based on Q1 earnings disclosure) · Source: Newspim, ETNews (A)
5-Year Financial Trend
For 2025, revenue is reported to have grown +22.8%, operating profit +48.8%, and net income +46.1% year-over-year, but absolute figures are not available. Q1 2026 results (revenue of KRW 1,036.5 billion, operating profit of KRW 258.3 billion) are confirmed figures (A).
Competitor Comparison
| Company | Core Positioning |
|---|---|
| HD Hyundai Electric | Up to 765kV ultra-high-voltage transformers; 765kV production planned at the Ulsan plant and the second Alabama, US plant |
| Hyosung Heavy Industries | 765kV ultra-high-voltage transformers; its Memphis, US plant is currently the only 765kV production plant in the US (No. 1 US market share) |
| LS ELECTRIC | Strengthening ultra-high-voltage transformers, but Distribution Equipment remains its core business |
HD Hyundai Electric's operating margin has been reported at roughly twice the level of the two peers (Herald Economy, C), but absolute figures are not available.
Valuation (Factual Multiples)
PER and PBR multiples expanded between 2024 and 2025 (C, media compilation; not cross-checked against fnguide originals). Figures recalculated on the same reference date (2026-07-16) and EV/EBITDA multiples are not available.
Investor Trading Flows
Due to a 2026 KRX Information Data System policy requiring login, direct measurement via pykrx of net trading by investor type, short-position ratio, market cap, etc., was entirely unavailable. Secondary scraped figures obtained through web research (alphasquare) showed a price inconsistent with the confirmed closing price (KRW 787,000) and were judged unreliable, so they are not cited in this report. Cumulative net trading by investor type, short-selling ratio, and margin balances are all unavailable.
Governance & Disclosures
| Shareholder | Relationship | Ownership (as of 2026-03-31) |
|---|---|---|
| HD Hyundai Co., Ltd. | Largest shareholder | 35.60% |
| Asan Social Welfare Foundation, et al. | Related parties | 1.67% |
| Total | - | 37.27% |
The largest shareholder HD Hyundai Co., Ltd.'s stake gradually declined from 37.18% (2024-12-23) to 35.41% (2026-07-07); this was not due to its own share sales but to dilution from an increase in shares outstanding following exchangeable bond (EB) conversions (as stated in the substantial-holding disclosure). There are five registered directors (including CEO Kim Young-ki), and Namgung Hoon and Han Chan-sik were newly appointed at the March 2026 annual general meeting. On 2026-03-23, three domestic rating agencies — Korea Ratings, Korea Investors Service, and NICE Investors Service — upgraded the unsecured bond credit rating one notch from A+ (Positive) to AA- (Stable). Total shares outstanding are 36,047,135 (including 54,431 treasury shares), with no change in treasury share acquisition, disposal, or retirement during the period.
Macro Factors
| Factor | Current Value (as of reference date) | Impact |
|---|---|---|
| US grid investment · data-center power demand | US power demand: 4.198 trillion kWh (2025) → projected 4.256 trillion kWh (2026) | Positive pathway |
| USD/KRW exchange rate | KRW 1,487.73 (2026-07-17) | Mixed direction |
| Copper price (LME) | USD 6.22/lb (2026-07-17) | Cost pressure factor |
| Electrical steel (GOES) price | USD 5,546/MT (as of 2026-03) | Cost pressure / oversupply mixed |
| US policy rate | 3.50%-3.75% (held 2026-06-17) | Indirect, limited |
Aging US grid infrastructure and surging AI data-center power demand are the most direct factors, already reflected in results via Q1 2026 North America revenue of +26.6% YoY and order backlog +17.2% (vs. year-end). Exchange rate and raw material trends are mixed, and procurement costs and FX hedging policy are not available.
News Timeline
- 2026-07-16: KOSPI program-trading sidecar triggered; index closed -6.37% (broad market decline driven by semiconductor sector concerns). No article citing a company-specific reason for HD Hyundai Electric was found.
- 2026-07-06: Amended disclosure raising the 2026 annual order target 22.8%, from USD 4.222 billion to USD 5.185 billion.
- 2026-07-02: Long-term supply agreement for data-center distribution and power equipment signed via the US Atlanta subsidiary (2026-07-02 to 2029-01-01), totaling KRW 1,121.2 billion.
- 2026-05-07: Order disclosure for 765kV ultra-high-voltage transformers and reactors, KRW 173.0 billion (4.24% of revenue).
- 2026-03-23: Three domestic credit rating agencies upgraded the unsecured bond rating one notch, from A+ (Positive) to AA- (Stable).
- 2026-01-06: The 2026 revenue target (KRW 4.35 trillion) fell short of market expectations at the time, and the stock fell -7.37% (reference; near the 6-month boundary).
Risk Factors
- US market concentration: 71.30% of Power Equipment exports are US-centered, making results sensitive to shifts in US order flow.
- Tariffs and trade: Ultra-high-voltage transformers are subject to a 15% tariff rate through 2027, which the company has largely passed through to selling prices. It is expanding local production capacity via a new Ulsan plant and a second Alabama, US plant.
- Product portfolio concentration: Results are heavily weighted toward specific high-margin products such as ultra-high-voltage transformers.
- Geopolitical factors (Middle East): One factor behind the Q1 2026 decline in Distribution Equipment segment revenue (-24.2% YoY) was a confirmed delay in low-voltage circuit breaker deliveries linked to Middle East geopolitical conditions.
- Multiple expansion: PER expanded from 27.45x (2024) to 38.03x (2025), and PBR from 9.16x to 13.75x (C, media compilation).
- Raw materials and FX: Fluctuations in key raw material prices (copper, electrical steel, etc.) and the USD/KRW exchange rate could affect profitability, but actual procurement costs, long-term supply contracts, and FX hedging policy are not available.
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · Toss Securities Open API · DART (Data Analysis, Retrieval and Transfer System) · Media reports (Newspim, ETNews, Investchosun, ZDNet Korea, etc.)