▶ Operating profit margin of 10.2%, marking the first double-digit operating profit margin since the launch of the integrated corporation
▶ Profitability-focused sales strategy amid the global market recovery... Even growth across all regions
▶ Continued growth in industrial and defense engines... Strengthening growth momentum through the new Gunsan factory

HD Construction Equipment announced through a public disclosure on Wednesday, July 29 that it recorded revenue of KRW 2.4342 trillion and operating profit of KRW 248.9 billion in the second quarter of 2026.

Compared to the same period last year, revenue and operating profit increased 18.2% and 92%, respectively. HD Construction Equipment has improved its performance for two consecutive quarters, driven by a profitability-focused product sales strategy and the recovery of the global market since the launch of the integrated corporation.

The revenue increase was attributed to the recovery of the global construction equipment market and expanded sales of industrial and defense engines. Operating profit improved due to factors such as increased sales of key regional models including next-generation new models, price increases, and reduced promotional costs, recording a double-digit quarterly operating profit margin of 10.2% for the first time since the launch of the integrated corporation.

The construction equipment division’s revenue increased 22% to KRW 2.0182 trillion compared to the previous year. The operating profit margin also improved significantly from last year’s 4.6% to 9.9%.

In particular, the next-generation new model excavator launched last year went on full-scale sales in developed markets such as North America and Europe aside from Korea, recording sales growth of 18% and 25%, respectively.

Sales of highly profitable medium-to-large models also contributed to the improvement in performance. Sales in Latin America increased 29.9% as demand for mining equipment expanded in countries such as Colombia and Peru. Likewise, the Middle East and Africa recorded a high sales growth rate of 51.4% as the supply of gold mining projects expanded.

Similarly, sales in India increased 22.1% due to expanded government-led infrastructure investment, with sales in China increasing 14.1% due to expanded social overhead capital (SOC) investment following the implementation of economic development plans.

Thanks to the continued global economic recovery, the engine division recorded sales of KRW 386.1 billion—a 5% increase year-on-year—and achieved an operating profit margin of 15.3%. The expansion of external sales of industrial engines and increased supply of defense engines for the K2 tank drove performance growth.

“Along with the recovery of the global market, our sales strategy centered on next-generation new models and high-profit products has been effective. We will expand the foundation for growth by diversifying our business portfolio, including strengthening the response to the defense and power generation markets based on the new engine factory in Gunsan,” an official from HD Construction Equipment said.