HD Construction Equipment Completes Merger with HD Hyundai Infracore, Expands Share Buybacks and Dividends, Boosting Shareholder Value
HD Construction Equipment completed the merger with HD Hyundai Infracore on January 1, 2026, becoming an integrated entity, renamed to HD Construction Equipment, expecting enhanced product portfolio and global competitiveness.
In 2025, consolidated revenue reached KRW 3.7765 trillion, operating profit KRW 170.9 billion, and net income KRW 87 billion. Revenue increased 9.8% YoY but operating profit declined 10.3% due to higher SG&A expenses including R&D and warranty costs.
Active share buybacks and cancellations in 2025: cancelled 947,973 shares including 304,176 shares (KRW 20.6 billion) and 592,000 shares (KRW 28 billion). Additional KRW 60.9 billion buyback and cancellation approved in February 2026, strengthening shareholder returns.
Proposed year-end dividend of KRW 550 per share (total KRW 26.3 billion), up 10% from KRW 500 in 2024. Payout ratio based on consolidated net income increased to 26.5% from 8.8%, reflecting commitment to shareholder value.
Debt ratio of 86.6%, net debt ratio of 19.5%, and interest coverage ratio of 4.82x indicate stable financial structure. Post-merger synergies expected to further improve financial metrics.
The US Supreme Court's February 2026 ruling against global reciprocal tariffs introduces uncertainty, but business diversification via merger helps mitigate tariff risks.
[AI Summary]HD Construction Equipment's merger with HD Hyundai Infracore is expected to enhance long-term enterprise value through economies of scale and synergies, though short-term operating profit decline and integration costs may pose challenges. Active share buybacks and dividend increases are positive signals for shareholder returns. With a stable financial foundation, full realization of merger synergies could positively impact the stock price.
KOSPI Filing Information
Filing: [Correction of Description] Business Report (2025.12)