HD Hyundai Construction Equipment Reports Its First Quarter Results
▶ Sales reached 906.8 billion won, with an operating profit of 41.7 billion won, reflecting a decline compared to the previous year.
▶ Tailored strategies for each region are in place... Continued growth noted in India and Brazil, with signs of demand recovery in China.
▶ “Revamping portfolios and cutting costs to navigate unpredictable market conditions.”
On Monday, April 28, HD Hyundai Construction Equipment published its first quarter results for 2025, reporting sales of 906.8 billion won and an operating profit of 41.7 billion won.
While sales in key emerging markets, such as India and Brazil, have shown solid growth, the recovery in demand from developed markets has been slower than anticipated, leading to a 7.4% year-on-year decline in sales and a 22.3% drop in operating profit.
Regionally, the company reported significant improvements in India, Brazil, and China. Sales in India and Brazil increased by 11% and 8%, respectively, influenced by government-led public infrastructure investments. In China, revenue saw an impressive 33% increase, driven by a combination of stimulus measures and equipment replacement cycles.
As demand for products in emerging markets fluctuates in response to mineral resource prices, HD Hyundai Construction Equipment intends to boost its market share with customized sales strategies tailored to each country's needs.
In contrast, sales of new products in advanced markets have declined due to ongoing uncertainties associated with U.S. tariffs and fluctuating interest rates. However, the aftermarket (AM) business is experiencing stable growth, fueled by the demand for replacement parts for older equipment.
“To navigate the uncertain market landscape, we plan to reorganize our product portfolio in developed markets by emphasizing high-margin equipment while focusing on maintaining profitability and minimizing costs,” stated an official from HD Hyundai Construction Equipment. “We are committed to strengthening our presence in key emerging markets such as India and Brazil, and we aim to enhance our global competitiveness through the development of next-generation models.”
2025.04.28