HD Hyundai Electric (267260.KS): 2Q26 Results First Glance: Revenue Beat but Operating and Net Profit Missed; New Orders Surged YoY

研报英文原文证据摘录

HD Hyundai Electric (267260.KS): 2Q26 Results First Glance: Revenue Beat but Operating and Net Profit Missed; New Orders Surged YoY

HD Hyundai Electric (267260.KS)

28 July 2026 Citi Research

across major overseas market (North America, Middle East and Europe); (ii)

distribution segment with profitability growth across all distribution products

mainly driven by switchgear to domestic semi-conductor industry plus more

contribution from increase in M/LV circuit breaker selling prices; (iii) rotating

segment with more profits from reciprocal tariff refunds, domestic low-voltage

motor sales and European rotating machinery sales and (iv) subsidiaries with

earnings improvement at Alabama and elsewhere foe greater exposure to high-

margin North American market.

New order surged — HDE's new orders added 44.6% yoy but -19.9% qoq to

US$1,440m in 2Q26 comprising (i) US$853m (+105.5% yoy but -35.1% qoq) or

59.2% from North America 1H26 order intake reached full-year achieved in 2025 and

profitability of newly secured power equipment orders improved qoq in 2Q26; (ii)

US$104m (+2.0% yoy but -37.3% qoq) or 7.2% from Middle East with orders

declined due to delays in Saudi HVDC project but remained at a solid level; recent

contract awards improved visibility for order intake in 2H26; (iii) US$129m (+17.3%

yoy and +222.5% qoq) or 9.0% from Europe with order increased supported by

carry-over projects from the previous quarter and expanding investments in Europe

by US hyper-scalers; profitability of newly secured European orders continued to

improve in 2Q26; and US$149m (+43.3% yoy but -3.2% qoq) or 10.3% from marine

products.

Implications — HDE was financially sound with net cash. We attribute the 50%

share price correction during the last three months as related to global investment