1. HD Hyundai Q2 Earnings: What Went Wrong?
HD Hyundai announced its Q2 2025 preliminary earnings on July 31, 2025. While revenue slightly increased to ₩172.111 trillion compared to the previous quarter, operating profit decreased to ₩11.389 trillion, and net profit plummeted by a massive 85% to ₩1.212 trillion.
1.1. Business Segment Analysis
- Refining: Volatility in international oil prices and weak refining margins are identified as the primary causes of the decline in profitability.
- Shipbuilding & Marine Engineering: Despite a high order backlog, decreased newbuilding orders and rising raw material prices negatively impacted profitability.
- Construction Equipment: The ongoing global economic slowdown continues to dampen demand.
- Electro Electric Systems: The contraction of the ESS market and intensified competition pose challenges.
2. External Environmental Factors
External factors also contributed to HD Hyundai’s underperformance. These include increased volatility in oil prices, rising interest rates, and fluctuating exchange rates.
3. HD Hyundai’s Future Outlook
While HD Hyundai’s diversified business portfolio provides a buffer against market volatility, reducing debt and managing risks related to external environmental factors remain crucial. Careful consideration should be given to the mid-to-long-term growth strategies of each business segment and hedging strategies against raw material price fluctuations.
4. Investor Action Plan
Investors should focus on HD Hyundai’s long-term growth potential rather than short-term earnings fluctuations. Continuous monitoring of debt reduction plans, new business performance, and a long-term investment perspective with careful risk management are essential.