While electric vehicles (EVs) have successfully entered the mainstream, the electrification of large-scale vessels remains a formidable challenge. Unlike passenger cars, large commercial vessels must transport tens of thousands of tons over vast distances for weeks at a time without the possibility of mid-voyage recharging. This necessitates not only massive energy storage solutions but a fundamental redesign of the ship’s propulsion architecture.   To resolve such issues, the shipbuilding industry is exploring solutions that use electricity generated from clean energy sources such as hydrogen, natural gas, and ammonia to power propulsion motors. This approach significantly reduces greenhouse gas emissions while also minimizing vibration and noise.   Electrification has three phases: power generation, distribution and conversion, and propulsion.   Power Generation for Electric-Powered Ships: Energy Mix   HD Hyundai is expanding the development and application of its “energy mix power system,” which combines dual-fuel engines (DFGE) with ammonia-based solid oxide fuel cells (SOFC).   DFGE offers flexibility in responding to fluctuations in power demand. During vessel operations, propulsion loads can change rapidly, and onboard power requirements may surge depending on equipment usage. DFGE systems can respond quickly and efficiently to these variations.   SOFC systems, on the other hand, generate electricity through electrochemical reactions, directly converting the chemical energy of fuel into electricity without combustion. According to the U.S. Department of Energy, this process reduces energy loss and improves overall efficiency compared to conventional engine- or turbine-based systems.   Not only that, the SOFC systems also provide an environmentally friendly solution that enables greater flexibility in meeting tightening carbon regulations.     Power Distribution at Sea: Direct Current   A key technology for efficiently distributing and converting generated electricity is the medium-voltage direct current (MVDC) system, which transmits electricity at voltages ranging from 1.5 kV to 100 kV.   Since the "War of the Currents” between Edison and Tesla, the alternating current (AC) type has been the standard method for transmitting electricity, but the direct current type MVDC is becoming a gamechanger at the sea. This is because it can optimize power conversion efficiency compared to conventional AC systems, minimizing energy loss. MVDC has been known to improve integrated energy efficiency by up to 20% when applied to large electric-powered ships.   HD Hyundai is actively developing MVDC technology while collaborating with the American Bureau of Shipping (ABS) to establish design standards and international regulations. In May 2024, the company signed a memorandum of understanding (MOU) with ABS to advance MVDC development and classification standards.   Localization of Propulsion Technology Nears   The final stage of ship electrification is propulsion. The medium-voltage propulsion drive, based on a modular multilevel converter (MMC) structure, is a critical component that precisely controls motor torque and speed.   This system delivers high-quality voltage and precise control, making it particularly effective for vessels requiring low noise and vibration, such as naval ships conducting covert operations. It enables stable performance even under extreme conditions, including ultra-low-speed operation and rapid acceleration or deceleration, while significantly reducing detectability compared to conventional mechanical propulsion systems.   HD Hyundai has secured core technologies for propulsion drives, which were previously reliant on imports, thereby strengthening its technological independence. As a result, the company has become the first in the global shipbuilding industry to localize the entire electric propulsion platform—from power generation to distribution and propulsion. HD Hyundai plans to officially commercialize the propulsion drive in 2028.   The Era of Large Electric-Powered Ships   By securing technologies across the entire electrification value chain, HD Hyundai is positioning itself at the forefront of the transition to large electric-powered ships.   In 2025, HD Hyundai received Approval in Principle (AiP) from the ABS at Gastech for the concept design of a 16,000 TEU container ship equipped with an electric propulsion system. HD Hyundai is now accelerating R&D efforts with the goal of commercializing large electric-powered vessels by 2030.    

▶ Handover ceremony held in Switzerland; achievement of the "Unmanned Autonomous Construction Equipment Project" in collaboration with Gravis. ▶ "Real-X" excavator to be deployed at a construction site for major European construction group KIBAG. ▶ Unmanned autonomous technology to perform earthwork on a 1km section in the Tuggen region, Switzerland. HD Hyundai XiteSolution, the intermediate holding company for HD Hyundai’s construction equipment business, has set a new milestone in construction equipment automation by deploying an unmanned autonomous excavator—capable of operating without human intervention—at an actual construction site for the first time.   On Wednesday, the 29th, HD Hyundai XiteSolution announced that, in partnership with Gravis Robotics, an AI-based unmanned automation specialist, it had delivered an unmanned autonomous excavator to a construction site operated by KIBAG, a large European construction group.   The equipment deployed is a 22-ton medium excavator from HD Construction Equipment. This unit features "Real-X," a solution that integrates HD Hyundai XiteSolution’s smart excavator platform with Gravis’s AI automation technology.   The excavator will be used at a construction site in Tuggen, Switzerland, for civil engineering work, including a trench that is 3m deep, 12m wide, and 1km long, using entirely unmanned autonomous methods.   The unmanned autonomous excavator powered by "Real-X" is not affected by operator fatigue or lapses in concentration. It can perform tasks according to preset goals and achieve productivity levels about 1.2 times higher than those of manned operations.   The delivery of this equipment is a significant result of the "Unmanned Autonomous Construction Equipment Project" jointly led by HD Hyundai XiteSolution and Gravis Robotics. The two companies have maintained their technical cooperation since signing a Memorandum of Understanding (MOU) for demonstrations of construction equipment automation at BAUMA 2025 in Germany last year.   HD Hyundai XiteSolution has been working towards fully automating construction sites since 2019 by developing unmanned autonomous solutions. Recently, the company has strengthened its leading position in this field by showcasing equipment equipped with "Real-X" during major exhibitions in Europe and North America for global customers.   Building on its previous demonstrations in Europe and this latest supply to the Swiss site, HD Hyundai XiteSolution plans to expand global partnerships and gradually increase the application cases for unmanned autonomous construction equipment.   "This project represents the initial phase of integrating unmanned autonomous construction equipment technology at a real job site," said Kim Pan-young, Senior Executive Vice President of HD Hyundai XiteSolution. "It will act as a turning point, improving safety and productivity on construction sites while advancing the future of the global construction equipment industry."

▶ First financial results since the launch of the integrated entity: Revenue of KRW 2.3049 trillion, Operating Profit of KRW 190.7 billion ▶ Revenue growth driven by synergy between Hyundai and DEVELON brands via the "Regional Head System" ▶ Even growth across advanced and emerging markets; Engine business maintains double-digit operating profit margins HD Construction Equipment, formed earlier this year through the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore, is realizing the effects of "One Team Synergy" following its integration. On the 27th, HD Construction Equipment announced that it recorded revenue of KRW 2.3049 trillion and an operating profit of KRW 190.7 billion for the first quarter of 2026. Compared to the same period last year, revenue rose by 22.1%, while operating profit experienced a substantial increase of 88.3%. Revenue showed a robust upward trend, driven by the complete recovery of global demand for construction equipment and accelerated growth in the industrial and defense engine sectors. Operating profit also grew significantly year-over-year, driven by improved profitability in the construction equipment division and steady earnings from the engine business. Analysts indicate that this growth results from "One Team Synergy" aligning with the market recovery since the integrated legal entity's launch on January 1st. HD Construction Equipment drove revenue growth through agile market responses from both the Hyundai and DEVELON brands, supported by a system of eight regional heads in the sales division. Furthermore, all departments—including production, sales, procurement, and R&D—secured cost competitiveness as a single team. By operating integrated assembly and delivery centers in Europe and North America, the company shortened lead times by 30% and reduced costs by 20%, enhancing both global customer responsiveness and profitability. Additionally, Chinese production bases were consolidated from the previous dual-site system (Jiangsu and Yantai) to a single site in Yantai, strengthening production and cost efficiency. Looking at performance by business segment, the Construction Equipment division recorded revenue of KRW 1.9275 trillion, a 26.9% increase from the previous year. Operating profit reached KRW 148.6 billion, achieving an operating profit margin of 7.7%. Growth was particularly driven by a balanced increase in revenue across all global regions. In emerging markets such as the Middle East&Africa, and Latin America, revenue grew sharply by 68.1% and 46.3% year-over-year, respectively, fueled by sales of ultra-large mining equipment and expanded infrastructure investment. Revenue in advanced markets, including North America and Europe, rose by 26% and 59%, respectively. In China, revenue increased by 17% compared to the previous year, driven by rising equipment demand following the expansion of overseas projects by Chinese construction firms. The Engine business division recorded revenue of KRW 336.1 billion, a 10% increase from the previous year, supported by growing sales of industrial engines and stable growth in defense engines. Operating profit reached KRW 47.3 billion, an 8% increase from the previous year, maintaining robust profitability with a double-digit operating profit margin of 14.1%. An official from HD Construction Equipment stated, "We will continue our sustainable growth by expanding construction equipment sales based on One Team Synergy and diversifying revenue streams through engines and the Aftermarket (AM) business."