▶ 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."

▶ Certification by the Korea Occupational Safety and Health Agency (KOSHA), evaluating product safety and quality management systems. HD Hyundai XiteSolution has further strengthened the safety of its electric forklifts. The company announced on Friday, the 24th, that it recently received the S-Mark safety certification from the Korea Occupational Safety and Health Agency (KOSHA) for 17 compact electric forklift models (3.5 tons and below), with plans to extend this designation to additional models moving forward. The S-Mark is a certification awarded by KOSHA, the state-designated authority for safety and health. This certification is granted following a thorough evaluation of a product's safety and the manufacturer's quality management capabilities. To earn the S-Mark, a company must successfully complete rigorous reviews of technical documents, undergo workplace audits, and pass product testing in accordance with ISO and KOSHA standards. This process ensures safety and reliability from the design phase all the way through to production. As the demand for industrial accident prevention increases, this certification is important because it provides objective credibility regarding the safety of equipment. Furthermore, customers purchasing certified products will be eligible for government subsidies and policy fund loans. These incentives, combined with purchase priority for public institutions, are expected to lower the burden of adoption for customers. Electric forklifts now represent roughly 60% of the domestic forklift market. The shift towards electrification is accelerating, driven by demand for eco-friendly, low-noise equipment in logistics centers and urban work settings. With annual domestic sales of 1,500 electric forklifts, HD Hyundai XiteSolution plans to leverage the S-Mark certification to grow its market share by emphasizing superior safety and quality. An official from HD Hyundai XiteSolution stated, "Earning this safety certification is a result of having both our product safety and quality management systems recognized. We will continue to provide safer and more reliable products by expanding the range of certified models."

▶ Supplies 264 G2 engines to Portugal's top generator manufacturer ▶ Best-in-class fuel efficiency and performance to meet demand for aging generator replacement ▶ Targets KRW 67 billion in European generator engine sales by 2030 HD Construction Equipment is accelerating its push into the European mobile generator market with its low-emission engine technology.  On the 20th, the company announced that it has signed a contract to supply 264 G2 engines (1.8/2.4/3.4L) for generators to Grupel, Portugal's leading generator manufacturer. This contract addresses Europe's growing need for mobile generators, as increasingly strict emission regulations are prompting the large-scale replacement of outdated equipment. The annual European market for small-engine generators is estimated at approximately 105,000 units. The G2 engine is a small engine that meets the European Stage V emission standards. It features an 1,800-bar high-pressure fuel injection system and fuel-saving technologies to deliver best-in-class performance, enhanced durability, and easier maintenance.  HD Construction Equipment sells over 2,000 G2 engines each year in Europe. Over the last decade, it has supplied more than 500,000 units to both North America and Europe, establishing a strong reputation for reliability. Following this deal, the company is set to expand its reach in the industrial engine market by pushing into the medium-sized segment with its 5L DX05 and 7.5L DX08 models. HD Construction Equipment aims to grow its European generator engine sales from the current KRW 40 billion to KRW 67 billion by 2030. Furthermore, the company plans to double its total global generator engine revenue from KRW 370 billion in 2025 to KRW 770 billion over the same period.                           According to market research firm Mordor Intelligence, the European diesel generator market is projected to grow at an average annual rate of 4.18%, rising from $3.87 billion (KRW 5.7 trillion) in 2026 to $4.74 billion (KRW 7 trillion) by 2031. "This order once again demonstrates the competitiveness of our G2 engines in the European market, where emissions regulations are becoming increasingly strict," said an official from HD Construction Equipment. "We will continue to expand our customer base across various industrial sectors, including the generator market."