HD Hyundai Electric reported its strongest annual performance to date, driven by rising demand for power infrastructure linked to artificial intelligence (AI) data centers and the replacement of aging electricity grids.

The company said annual revenue reached $2.78 million (4.08 trillion won) in 2025, up 22.8% year on year, while operating profit climbed 48.8% to $678 million (995.3 billion won). It marked the first time operating profit approached $682 million (1 trillion won). The operating margin for the year improved sharply, with the fourth quarter setting a record high of 27.6%.

Fourth-quarter operating profit rose 93% from a year earlier to $219 million (320.9 billion won), exceeding market expectations. Revenue for the quarter increased 42.6% to $791 million (1.16 trillion won).

Growth was led by the company’s power equipment business, particularly demand for ultra-high-voltage transformers, which are used to transmit large amounts of electricity efficiently. Rising power consumption from data centers and continued investment in grid upgrades supported orders, especially in North America and Europe.

Revenue from power equipment increased 29.7% year on year, with European sales rising 38.3% and accounting for more than 10% of total revenue. The company also cited selective acceptance of higher-margin projects as a key contributor to improved profitability.

Annual orders totaled $4.27 billion, exceeding guidance, while the order backlog reached $6.73 billion, equivalent to more than three years of production. For 2026, the company forecasts revenue of $3 billion (4.35 trillion won) and plans to continue focusing on high-value projects, including 765-kilovolt transformers, while managing exposure to currency and raw-material price fluctuations.

Source: biz.chosun.com