▶ 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.”  

▶ Participated in Latin America's largest defense exhibition SITDEF Perú, showcasing submarines and frigates for export ▶ Signed agreement with Peruvian state-owned shipbuilder SIMA to jointly develop 1,500-ton customized submarine ▶ Obtained AIP for self-developed medium-sized submarine HDS-1500 and signed MOU with UNI for shipbuilding research and development HD Hyundai Heavy Industries is launching its entry into the Latin American submarine market with its proprietary submarine. HD Hyundai Heavy Industries announced on the Monday, April 28th that it is participating in SITDEF 2025, Latin America's largest defense exhibition held in Lima, Peru from the 24th to the 27th local time. At the exhibition, HD Hyundai Heavy Industries jointly set up a 220㎡ exhibition booth with LIG Nex1, a global defense company, showcasing next-generation frigates ordered by the Peruvian Navy in April last year and next-generation submarines being jointly developed with the Peruvian government. HD Hyundai Heavy Industries also held a promotional seminar for its self-developed export submarines at the exhibition. The event was attended by key defense officials from both countries, including Peru's Defense Minister, Navy Chief of Staff, as well as the Director of Policy at the Republic of Korea Navy Headquarters and the Head of the Maneuver Program Department of the Defense Acquisition Program Administration. LIG Nex1 and others also participated in the seminar, introducing key systems and solutions to be installed on the submarine. Plans to expand naval vessel cooperation with Peru were also discussed. On the 24th local time, HD Hyundai Heavy Industries signed a “Memorandum of Agreement (MOA) for Joint Development of Peruvian Submarines” with Peruvian state-owned shipbuilder SIMA at the HD Hyundai Heavy Industries exhibition booth. This agreement is a follow-up measure to the Memorandum of Understanding (MOU) for submarine joint development signed at Peru APEC 2024 last November. The core of the MOA is to develop customized submarines based on HD Hyundai Heavy Industries' cutting-edge technology and Peru's maritime defense capabilities as part of the Peruvian Navy's aging fleet renewal program. The goal is to replace aging submarines with a 1,500-ton medium-sized vessel based on HD Hyundai Heavy Industries' HDS-1500 model. Additionally, HD Hyundai Heavy Industries signed an MOU with UNI, Universidad Nacional de Ingeniería, in Lima to promote education and research in the shipbuilding industry. Through this agreement, they plan to advance research and development of advanced technologies in shipbuilding and naval defense sectors and pursue various cooperative projects including talent development. Meanwhile, HD Hyundai Heavy Industries obtained Approval in Principle (AIP) on the 25th local time, from the global classification society DNV for the HDS-1500 submarine showcased at this exhibition. This follows the AIP received last year from DNV for the 2,300-ton submarine HDS-2300, expanding HD Hyundai Heavy Industries' K-submarine export lineup in the global market. "HD Hyundai Heavy Industries is expanding its cooperative relationship from surface vessels to submarines based on a long-term partnership with the Peruvian Navy. HD Hyundai Heavy Industries has completed all preparations to enter the Latin American market with Peru as its stronghold." said Joo Wonho, Head of the Naval & Special Ship Business Unit at HD Hyundai Heavy Industries. ■About SITDEF: The International Exhibition of Defense Technology and Disaster Prevention (Salón Internacional de Tecnología para la Defensa y prevención de desastres, SITDEF) is Latin America's largest defense exhibition held in Lima, Peru biennially since 2007. This year's exhibition was held from April 24th to 27th local time, with participation from over 170 global defense companies from 27 countries. Advanced defense technologies including major platforms for army, navy, and air force, missiles, air defense systems, and electronic warfare were showcased.  

▶ Sales and operating profit decreased year-over-year, largely due to a slow recovery in demand across North America and Europe.  ▶ There has been a resurgence in demand in China, Asia, and Africa, leading to improved profitability compared to the previous quarter.  ▶ In the engine division, the focus on high-margin engine products has resulted in an operating profit margin of 16.6%, significantly enhancing overall profitability.   HD Hyundai Infracore announced its financial performance for the first quarter of 2025 on Thursday, April 24, reporting sales of 1.185 trillion won and an operating profit of 67.8 billion won. These figures indicate a 12% decrease in sales and a 27% reduction in operating profit year over year, mainly due to a prolonged global recovery in demand. Nevertheless, the overall operating profit margin has improved to 6.7%, due to strategic measures aimed at enhancing profitability, which include price adjustments and reduced promotional expenditures. In the construction machinery division, sales reached 753.1 billion won, marking an 11% decline compared to the previous year, while operating profit stood at 23.6 billion won. The performance in developed markets like North America and Europe has encountered obstacles due to a slower-than-expected recovery in demand. However, the Chinese market has shown consistent growth for four quarters in a row. Additionally, there are positive signs of recovery emerging in developing markets such as Southeast Asia and Africa. The current quarter has shown improved performance compared to the previous quarter, with signs of recovery in some markets. This suggests that positive momentum is building, which is expected to create a solid foundation for increased profitability and an overall improvement in performance. The engine division saw a year-on-year sales decline of 14%, bringing total sales to 265.4 billion won, with an operating profit of 44.2 billion won. Importantly, the operating profit margin improved to 16.6%, thanks to a greater proportion of high-margin product sales. Engine sales for power generators have remained stable, bolstered by rising electricity demand in North America and emerging markets. Furthermore, there has been a rise in the sales of engines for large electronic gas generators, as well as for defense applications, with continued growth expected in these areas. An official from HD Hyundai Infracore has stated that the company intends to introduce next-generation models to enhance its competitive position, particularly in advanced markets. Efforts will also be directed toward strengthening profitability through measures such as reducing promotional expenses, lowering fixed costs, and increasing sales prices.