HD Hyundai Electric Q3 Earnings: Unpacking the Disappointment

HD Hyundai Electric reported Q3 2025 revenue of ₩906.2 billion, operating profit of ₩209.1 billion, and net income of ₩142.4 billion, missing market estimates. Rising raw material prices, unfavorable exchange rate fluctuations, and rising interest rates are cited as key contributors. The significant decline in net income warrants further investigation.

Historical Performance: A Trend of Decline?

The continuous decline in revenue and profit since Q1 2025 raises concerns. While seasonal factors and project timelines play a role, three consecutive quarters of declining profits require a proactive response from management.

External Environment: Navigating Uncertainties

Volatility in the Won/Dollar and Won/Euro exchange rates, rising U.S. interest rates, and fluctuating raw material prices pose ongoing challenges to HD Hyundai Electric’s profitability.

Fundamental Analysis: Opportunities Amidst Challenges

A strong order backlog and large-scale projects in the Middle East and North America offer potential long-term growth drivers. The acquisition of Plaspo and entry into new business segments is also a positive development. However, the high debt-to-equity ratio remains a concern.

Investor Action Plan: Buy, Sell, or Hold?

Increased short-term stock price volatility is expected, requiring cautious investment decisions. A long-term perspective, coupled with close monitoring of the company’s fundamentals and market conditions, is crucial for developing a sound investment strategy. Stay informed about future earnings releases and market developments, and consider consulting with financial professionals.