HD Hyundai Electric reported a 37.3% year-over-year increase in operating profit for Q2 2026, reaching 287 billion won, according to preliminary consolidated results disclosed on May 28. The South Korean electrical equipment manufacturer attributed the performance to improved profitability across all business segments alongside strong export demand from North America and Europe. The company is negotiating large-scale long-term supply contracts with four big tech companies for data center power and distribution packages.
HD Hyundai Electric Reports 37.3% Operating Profit Growth in Q2 2026
HD Hyundai Electric's Q2 2026 revenue reached 1.1418 trillion won, a 26% increase from the prior-year period. Net profit surged 45.2% to 206.1 billion won. All three business divisions—power equipment, distribution equipment, and rotating equipment—delivered revenue and profitability improvements.
Power and Distribution Equipment Segments Drive Revenue Gains
Power equipment revenue rose 10.7% year-over-year to 535.9 billion won in Q2 2026. The segment benefited from sustained structural growth in North America transformer sales and improved profitability in Europe and the Middle East. Distribution equipment revenue jumped 20.2% to 231.2 billion won, driven by expanded deliveries to domestic semiconductor projects. HD Hyundai Electric stated that distribution equipment profitability will improve further in the second half of 2026 due to price increases for medium- and low-voltage circuit breakers. Rotating equipment posted revenue growth of approximately 9%, with an additional temporary profit boost from mutual tariff refunds.
North America Orders Surge 105.5% Year-Over-Year
North America orders increased 105.5% compared to Q2 2025. Europe orders grew 17.3%, supported by US hyperscaler investments in the region. Middle East orders declined quarter-over-quarter due to delayed issuance of a Saudi Arabia HVDC project but remained 2% higher than the prior-year period.
HD Hyundai Electric Negotiates Data Center Supply Contracts with Four Big Tech Companies
HD Hyundai Electric disclosed on May 28 that it is negotiating additional large-scale volumes with big tech company A for long-term supply of power and distribution transformers, beyond a previously announced 1.1 trillion won contract. The additional volumes target delivery in 2029-2030. The company is also in negotiations with big tech companies B, C, and D for large-scale long-term supply contracts of power and distribution packages for data centers.
FAQ
What was HD Hyundai Electric's operating profit in Q2 2026?
HD Hyundai Electric reported an operating profit of 287 billion won in Q2 2026, a 37.3% increase from the same period in 2025.
Which business segments contributed to HD Hyundai Electric's Q2 2026 revenue growth?
Power equipment revenue rose 10.7% to 535.9 billion won, distribution equipment revenue increased 20.2% to 231.2 billion won, and rotating equipment posted approximately 9% revenue growth in Q2 2026.
What data center supply contracts is HD Hyundai Electric negotiating?
HD Hyundai Electric is negotiating additional large-scale transformer volumes with big tech company A for 2029-2030 delivery, beyond a previously disclosed 1.1 trillion won contract. The company is also in negotiations with big tech companies B, C, and D for long-term power and distribution package supply contracts for data centers.
