HD Construction Equipment Targets USD 5.9B Revenue

HD Construction Equipment has announced an ambitious revenue target of USD 5.9 billion for its inaugural year of operations. The company, which operates as the integrated construction machinery arm of South Korea’s HD Hyundai Co., has also set an operating profit goal of 439.6 billion won as it begins operations under a unified structure.

Financial Goals Unveiled at Investor Briefing

The revenue and profit targets were revealed during a briefing for domestic and international institutional investors held in Seoul on Wednesday. According to Pulse, the English-language service of Maeil Business News Korea, the company aims to leverage its recent integration to accelerate global growth while improving profitability across markets.

The company’s consolidated revenue target stands at 8.72 trillion won, reflecting confidence in its operational scale and market reach following the merger of its construction machinery divisions.

Focus on Integration and Long-Term Strategy

During the investor meeting, HD Construction Equipment outlined plans to capitalize on operational synergies created through the integration of its machinery businesses. Company president Moon Jae-young stated that the firm plans to outperform overall market growth by swiftly executing its mid- to long-term strategy.

He also emphasized the importance of sustained investment in manufacturing facilities and technology development to strengthen the company’s core competitiveness in the global construction equipment industry.

Strong Order Momentum in Africa

The company reported a solid start to the year, highlighted by major order wins across Africa. A key contract was secured for the supply of construction equipment to a gold-mining project in Ethiopia. The order includes 70 units of 36-ton Develon excavators and 50 units of 34-ton Hyundai excavators.

HD Construction Equipment noted that deploying both Hyundai and Develon machines at a single site demonstrates the effectiveness of its integrated sales strategy. The company also pointed out that demand for its 30-ton class excavators remains strong in Africa due to their performance in harsh mining and resource-development conditions.

Expanding Presence in Southeast Asia

Beyond Africa, HD Construction Equipment has strengthened its footprint in Southeast Asia through large-scale orders. In Vietnam, the company secured contracts for a total of 71 units to support government-led and national development projects.

These orders include 20 units of 20-ton wheel excavators for emergency disaster preparedness initiatives, along with 20 to 30-ton class crawler excavators designated for infrastructure expansion projects across the country.

New Projects in Central Asia

The company has also made inroads into Central Asia by signing a supply agreement with Kyrgyzstan for 41 units of heavy machinery. This fleet comprises 52-ton large excavators and 38-ton mid-to-large excavators, which will be deployed for transportation network development and real estate construction projects.

Strengthening Global Support and Local Presence

Looking ahead, HD Construction Equipment plans to enhance its customer support capabilities by leveraging the combined strengths of its Hyundai and Develon brands, particularly in Africa and other high-growth regions. The company also aims to establish cooperative frameworks to respond quickly to rising equipment demand in key countries, reinforcing its local market presence.

With strong early orders and a clear integration-driven strategy, HD Construction Equipment is positioning itself for steady global expansion in its first full year of operations.