“No Concerns over Tariff Risks... Profitability Expected to Remain Strong” — HD Hyundai Electric Posts Record-High Q1 Revenue

[Korea Financial Times, Shin Haeju] “There were no one-off gains or losses reflected in the first-quarter results. We believe this level of profitability can be sustained in the second quarter and beyond. We also expect exchange rate fluctuations will not significantly impact the margin.”

HD Hyundai Electric Co., Ltd. (CEO: Kim Young-ki) made this statement during its earnings conference call held on April 22, following its announcement of record-breaking quarterly revenue of KRW 1.0147 trillion in Q1, marking a notable earnings surprise.

Revenue increased by 26.7% year-on-year, while operating profit surged to KRW 218.2 billion — a 69.4% increase from the same period last year. The operating margin rose 5.4 percentage points year-on-year to reach 21.5%.
The Power Equipment division — the company’s core cash cow — led the overall performance, recording KRW 463.7 billion in sales, up 46.1% YoY. Overseas subsidiaries also contributed significantly, with shipments from Q4 2024 reflected in Q1 results. In particular, the North American subsidiary saw robust profitability from high-margin projects.


“This marks the first time since our spin-off in 2017 that we’ve exceeded KRW 1 trillion in quarterly revenue,” said HD Hyundai Electric. “The share of revenue from the North American market, known for strong profitability, has significantly increased.” The company added, “Given our strong pipeline of high-margin orders, we expect to maintain a similar level of profitability in the coming quarters.”

While recent developments surrounding reciprocal tariffs initiated by the United States have garnered attention, HD Hyundai Electric projects minimal impact.

“We have already begun negotiations with our North American clients. Most of them have responded positively to potential price increases,” the company stated. “We believe we can hedge a significant portion of our exposure to tariff-related risks.”

Regarding the market environment, the company noted, “The second Trump administration recently signed an executive order related to the energy emergency, and power demand is projected to grow by 3–4% compared to last year.” It added, “Continuous investment in power infrastructure will be necessary to meet this demand, and customers also foresee ongoing supply-demand imbalances.”

The company further clarified that, “To date, there have been no delays or cancellations of orders attributable to reciprocal tariffs.”

Addressing concerns over potential future impacts if orders continue under such tariff conditions, HD Hyundai Electric emphasized, “We are actively negotiating tariff risk hedging mechanisms with clients and are not concerned about a decline in profit margins.”

The company explained that its clients fall into two categories: “First, customers with existing short-term supply contracts containing finalized terms — they have expressed willingness to negotiate favorably if tariffs are imposed. Second, customers with whom we are pursuing new contracts under the understanding that the cost of reciprocal tariffs will be passed on to them.”
HD Hyundai Electric maintains a strategy of hedging 50% of its net exposure with maturities of less than one year.

Shin Haeju (hjs0509@fntimes.com)