▶ Improved equipment profitability and robust engine sales drive a 6% increase in revenue and a 24% surge in operating profit
▶ Infrastructure and mining investments continue expanding in emerging markets, while next-generation model sales rise in advanced markets
▶ Engine sales grow on the back of power generator supply for data centers and a broader recovery in the construction equipment industry
HD Construction Equipment announced via public disclosure on October 26 that it posted revenue of KRW 2.0915 trillion and an operating profit of KRW 157.7 billion for the third quarter of 2026, achieving a solid operating profit margin of 7.5%.
Both revenue and operating profit saw significant year-on-year growth, climbing 6.1% and 23.9%, respectively. Top-line growth was driven by strong sales of generator and industrial engines, while bottom-line profitability was substantially boosted by a combination of structurally improved equipment margins and the robust performance of the engine business.
By business segment, the Construction Equipment Division generated KRW 1.6235 trillion in revenue and KRW 109.9 billion in operating profit. While prolonged geopolitical uncertainties weighed on performance in the Middle East and Africa, continuous demand from mining and infrastructure projects in other regions sustained steady sales of mid-to-large products. Profitability was further supported by a reinforced aftermarket strategy that expanded high-margin parts sales.
Revenue across advanced markets, including North America and Europe, grew 4% year-on-year. A residential housing slump in Europe led to a decline in regional sales, but this was offset by strong North American demand for next-generation models and commercial trucks. Sustained expansion in the equipment rental market also backed the overall revenue growth. Moving forward, HD Construction Equipment plans to maintain this growth momentum by rolling out next-generation lineups and prioritizing new product sales in advanced markets.
Revenue in the Commonwealth of Independent States (CIS), Southeast Asia, and Oceania surged 30.2% year-on-year, driven by the supply of customized localized products. The CIS region saw a rise in sales of ultra-large construction equipment, while compact equipment sales drove growth in Australia and New Zealand.
In India, revenue jumped 26.6% year-on-year as government-led infrastructure investment boosted sales of compact excavators and wheel loaders. The Latin American market also sustained its stable upward trajectory, growing 26.8% on the back of expanding mining demand.
The Engine Division generated KRW 394 billion in revenue and KRW 55.2 billion in operating profit. Sales of generator engines increased due to expanding power demand from data centers, while industrial engine sales rose alongside the recovery in global construction equipment market conditions. By prioritizing high-margin products in its sales strategy, the division maintained a solid double-digit operating profit margin of 14%.
HD Construction Equipment plans to begin manufacturing megawatt (MW)-class diesel generators next year at its near-complete Gunsan plant. Simultaneously, the company will expand its large-scale gas engine production lines at the Incheon plant to meet the skyrocketing demand for data center generator engines, particularly in North America.
"Through profitability-focused business operations, we were able to achieve robust operating profits despite the recent decline in exchange rates," an official from HD Construction Equipment said. "Moving forward, we will strengthen our growth momentum by reinforcing our next-generation lineups and localized construction equipment product families, while aggressively targeting the data center generator engine market utilizing our new Gunsan plant."
