HD Hyundai Electric Co., Ltd. Posts Q3 Operating Profit of 284.5 Billion Won; Distribution Equipment and New Businesses Show Growth

[Financial News] HD Hyundai Electric Co., Ltd. reported operating profit of 284.5 billion won for the third quarter of this year. Operating profit rose 15.1% from the same period last year, as sales growth in distribution equipment and new businesses stood out. 
HD Hyundai Electric Co., Ltd. plans to build a production cluster for distribution equipment and expand production capacity to strengthen its ability to respond to high-value strategic markets and its global supply competitiveness. 
HD Hyundai Electric Co., Ltd. disclosed on the 27th that it recorded revenue of 1.1799 trillion won and operating profit of 284.5 billion won in the third quarter of 2026. Revenue rose 18.5% and operating profit 15.1% from the same period last year. The operating margin was 24.1%.
The distribution equipment and new business segments led the growth.
Demand for distribution transformers expanded amid a semiconductor supercycle, boosting distribution equipment sales in North America. Revenue from the battery energy storage system (BESS) project on Anjwa Island, Sinan, Jeonnam-Gwangju, which was secured in December last year, was also reflected, sending sales in the distribution equipment and new business segments up 85.8% from the same period last year.
Sales in the rotating machinery segment also rose 16.5% over the same period, supported by robust domestic demand.
Profitability continued to improve for power transformers in North America and high-voltage circuit breakers in the Middle East. Profitability for distribution equipment and distribution transformers also improved in the North American and domestic markets, keeping operating profit on a solid trajectory.
Q3 orders totaled $980 million, down 19.1% from the same period. This reflected a base effect after the company recorded large-scale orders totaling $3.231 billion in the first half of this year. However, the order backlog stood at $8.843 billion at the end of Q3, up 4.2% even from the previous quarter, maintaining a solid order base.
HD Hyundai Electric Co., Ltd. also disclosed its investment plan for Phase 2 of the Cheongju Distribution Campus that day. The company plans to invest a total of 198 billion won over the next 26 months to build a production cluster for distribution equipment and expand production capacity.
The investment is intended to enable the company to respond proactively to market changes, including the expansion of large-scale power infrastructure projects centered on AI data centers and the increase in package orders for supplying a range of distribution equipment together. By also boosting production efficiency through the construction of smart factories and logistics automation, the company expects annual sales to increase by 250 billion won.
A representative of HD Hyundai Electric Co., Ltd. said, "Long-term contracts structured as packages that include the supply of both power transformers and distribution equipment have been expanding recently, particularly among North American big tech companies." The representative added, "Building on our integrated supply capabilities spanning power transformers, distribution transformers and distribution equipment, we will strengthen our differentiated competitiveness and further expand our presence in the global power infrastructure market."

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