Just a few months after merging into the largest construction equipment company in South Korea, HD Construction Equipment reports a solid first quarter built on growing equipment and engine sales.
HD Construction Equipment was formed earlier this year through the merging of HD Hyundai Construction Equipment and HD Hyundai Infracore, the corporate name for the Develon brand.
HD brought in $1.5 billion in revenue for the first quarter of this year, up 22.1% compared to the first quarter of 2025. Operating profit rose 88.3% year-over-year to $130 million.
The company attributed the revenue growth to recovered demand in the global construction equipment market and growing industrial and defense engine sectors, while improving profitability and steady engine business earnings boosted operating profit.
Revenue for construction equipment was up 27% to $1.3 billion, and operating profit within the segment came in at $100 million. Hyundai attributed the growth to revenue gains in all its global markets, including notable gains of 68.1% in the Middle East and Africa and 46.3% in Latin America. North American construction equipment revenue in the first quarter was up 26%.
In the first quarter, Hyundai Construction Equipment sold 299 new financed machines in the U.S. between its Hyundai and Develon brands, according to Fusable’s EDA equipment finance data. Popular models included the Develon DTL35 compact track loader, and the Hyundai HA30 articulated dump truck. (EDA is owned by Fusable, parent company of Equipment World.)
Hyundai’s engine segment reported a 10% increase in first-quarter revenue to $230 million, based on growing industrial engine sales and solid growth of its defense engines business. The engine segment’s operating profit was up 8% to $32 million.
A key accomplishment the company highlights in the first quarter is improved cost competitiveness among its production, sales, procurement and R&D departments. Additionally, lead times in Europe and North America fell by 30%, and costs were down 20%, which the company attributed to using integrated assembly and delivery centers.
Currency conversions as of May 12, 2026.
