HD Construction Machinery has continued its trend of improving performance for the second consecutive quarter, driven by a profitability-focused product sales strategy and a recovery in the global market.
On July 29, HD Construction Machinery announced that it achieved sales of 2.4342 trillion won and an operating profit of 248.9 billion won in the second quarter of 2026. This represents an 18.2% increase in sales and a 92% rise in operating profit compared to the same period last year.
Sales growth was attributed to the recovery of the global construction machinery market and an increase in sales of industrial and defense engines. Operating profit rose due to expanded sales of key models, including next-generation new models, price increases, and reduced promotional costs. The company achieved a double-digit quarterly operating profit margin of 10.2% for the first time since the establishment of the integrated corporation.
By business segment, the construction machinery division reported sales of 2.0182 trillion won, a 22% increase from the previous year. The operating profit margin also significantly rose from 4.6% last year to 9.9%.
Notably, the 'next-generation new model' excavators launched last year drove sales growth of 18% in North America and 25% in Europe and South Korea.
Sales of high-margin mid-to-large models also contributed to the improved performance. In Latin America, demand for mining equipment surged in Colombia and Peru, leading to a 29.9% increase in sales, while the Middle East and Africa saw a remarkable 51.4% growth due to expanded supply for gold mining projects.
In India, sales rose by 22.1% due to increased government-led infrastructure investments, and in China, sales increased by 14.1% as a result of expanded social overhead capital (SOC) investments driven by economic development plans.
The engine division reported sales of 386.1 billion won, a 5% increase from the previous year, with an operating profit margin of 15.3%. Growth was driven by increased external sales of industrial engines and a rise in defense engine supplies for K2 tanks.
An HD Construction Machinery official stated, "The recovery of the global market and our sales strategy focused on next-generation new models and high-profit products have been effective. We will diversify our business portfolio to strengthen our response to the defense and power generation markets based on our new engine plant in Gunsan, thereby expanding our growth base."
Additionally, HD Construction Machinery announced that it held a launch event for 20-ton DEVELON excavators targeting major dealers in Middle Eastern countries such as Saudi Arabia, the United Arab Emirates, Qatar, and Oman at its production facility in Pune, India, in May, as part of its efforts to diversify its portfolio.
* This article has been translated by AI.
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