HD Hyundai (267250) Q2 2026 earnings summary

Executive summary

• Achieved a significant turnaround in Q2 2026, posting a consolidated operating profit of 1.8241 trillion KRW, up 890.6 billion KRW from the previous quarter and 2.0654 trillion KRW year-over-year, driven by higher oil prices and inventory gains.

• Net income reached 1.2198 trillion KRW, a 153% increase year-over-year, marking a return to profitability from a loss in the prior year.

• Report covers the semi-annual period ending June 30, 2026, for a diversified holding company with major subsidiaries in shipbuilding, oil refining, electrical equipment, construction machinery, and robotics.

• The group operates globally with 92 consolidated subsidiaries, including recent mergers and new entity establishments.

• The company maintains a strong credit profile, with most recent bond ratings in the A to AA- range and commercial paper at A2+ to A1.

Financial highlights

• Revenue for Q2 2026 was 9.4774 trillion KRW, up 23% sequentially and 45% year-over-year.

• Consolidated revenue for H1 2026 was KRW 42.0 trillion, with operating income of KRW 7.0 trillion and net income attributable to owners of the parent at KRW 2.1 trillion.

• Operating margin improved to 19.2% from 12.1% in Q1 2026 and -3.7% in Q2 2025.

• Gross profit rose to 2.0333 trillion KRW, a 77% increase sequentially and a turnaround from a loss last year.

• Cash and cash equivalents at period end were KRW 13.95 trillion, with total assets of KRW 90.7 trillion and total equity of KRW 34.9 trillion.

Outlook and guidance

• Oil price volatility expected to persist throughout 2026 due to ongoing Middle East geopolitical risks and global supply uncertainties.

• Gasoline market expected to remain firm in H2 2026 due to low global inventories and continued Strait of Hormuz disruptions.

• The group expects continued strong demand in shipbuilding, energy, and electrical equipment, with a robust order backlog and high utilization rates across segments.

• Ongoing investments in green energy, digital solutions, and global expansion are expected to support future growth.

• Middle distillates to see strong market conditions in Q3 2026 amid continued geopolitical tensions.