▶ 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.