As of 2:30 p.m., shares were up 12,600 won, or 7.58%, from the previous session at 177,500 won, according to the Korea Exchange. The stock touched an intraday high of 178,000 won, its highest level on record.
The gains were seen as reflecting expectations for expanded sales in Europe. The company said the previous day it had signed a deal with Portuguese generator maker Grupel to supply 264 units of its G2 engine for generators.
The contract is aimed at meeting rising demand for mobile generators in Europe and replacement demand driven by tighter emissions rules. The G2 is a small engine that meets Europe’s Stage V emissions standards and uses a high-pressure fuel injection system and fuel-efficiency technology to improve performance and durability.
HD Construction Equipment said it plans to pursue additional orders for mid-sized engines such as the DX05 and DX08. It aims to lift European power-generation engine sales from 40 billion won to 67 billion won by 2030, and to expand total power-generation engine sales to about 770 billion won from 370 billion won in 2025.
The market outlook for Europe’s generator sector has also been viewed positively. Research firm Mordor Intelligence forecasts the European diesel generator market will grow from $3.87 billion in 2026 to $4.74 billion in 2031, a compound annual growth rate of 4.18%.
Brokerage analysts have also pointed to a recovery in the construction equipment cycle. Samsung Securities analyst Han Young-soo said, “As the global construction equipment market enters a rebound phase, HD Construction Equipment, which has a large base effect, is expected to grow faster,” adding that demand tied to U.S. dealer inventory building, stabilization in Europe, firm raw material prices and the industry cycle suggest the broader recovery will continue.
* This article has been translated by AI.
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