An aerial view of an HD Hyundai Electric facility. [HD Hyundai Electric]
An aerial view of an HD Hyundai Electric facility. [HD Hyundai Electric]

HD Hyundai Electric posted sales of 1.14 trillion won ($779 million) and operating profit of 287 billion won in the second quarter, the company announced Tuesday. Sales rose 26 percent from a year earlier and operating profit 37 percent.

Sales grew across all product lines in the power equipment segment. High-voltage circuit breakers, supplied mainly to overseas data center projects centered on North America, saw sales rise 10 percent from a year earlier. Distribution equipment sales climbed 20 percent year-on-year, driven by demand from semiconductor projects in South Korea.

By region, North America generated 541.9 billion won in second-quarter sales, up 10 percent from a year earlier. Hwang Jong-hyeon, an executive director at HD Hyundai Electric, attributed the performance to a strong order intake. "We secured a large number of high-margin specialty products, including 765-kilovolt equipment, and power equipment market prices in the United States are rising broadly," he said.

European sales rose 16 percent to 110.1 billion won. Middle East sales, meanwhile, fell 19 percent year-on-year to 129.8 billion won. Hwang said the company is deliberately scaling back orders from the region. "Under our localization policy, we are reducing Middle East orders and reallocating those production slots to Europe," he said.

HD Hyundai Electric expects the favorable business conditions to continue for now. "We are actively pursuing sales in the data center market as a new growth engine and are in talks with three global big-tech companies on long-term supply contracts for power equipment," Hwang said. The company projects that data center-related orders will account for 16 percent of total power equipment earnings by 2027, up from current levels.

HD Hyundai Electric's total order backlog stood at $8.49 billion, up 29 percent from a year earlier. New orders booked in the second quarter reached $1.44 billion, a 44 percent increase year-on-year.

"On top of the structural growth in our power equipment business, profitability in distribution equipment has also improved significantly, allowing us to deliver solid earnings," a company official said. "As rising power demand — centered on data centers — translates into orders for distribution and rotating equipment, we expect stable growth to continue in the second half as well."


klee@heraldcorp.com