HD Construction Equipment's merger with HD Hyundai Infracore drives Q1 sales to 2.3T won and operating profit to 190.7B won, while share buyback enhances shareholder value
HD Construction Equipment completed the absorption merger with HD Hyundai Infracore on January 1, 2026, boosting total assets from 3.6 trillion won to 9.3 trillion won and expanding consolidated subsidiaries from 10 to 25, including the new engine division.
For Q1 2026, consolidated revenue surged 154% YoY to 2.3049 trillion won, operating profit jumped 358% to 190.7 billion won, and net profit attributable to controlling interest soared 511% to 173.9 billion won, demonstrating strong merger synergy.
Basic EPS reached 3,631 won, up 125% from 1,613 won in Q1 2025, despite a significant increase in outstanding shares from 17.64 million to 47.80 million after the merger, indicating the merger was highly accretive.
The company initiated a 609 billion won share buyback trust agreement in February 2026, purchasing 121,000 shares (16.1 billion won) by end of Q1, with plans to cancel all acquired shares by August 2026. Additionally, 52,221 shares from appraisal rights and fractional shares were cancelled via capital reduction on April 30, 2026.
Consolidated debt ratio stood at 92.49% (86.64% at year-end 2025), net debt ratio improved to 18.27% (19.49% at year-end), and interest coverage ratio rose sharply to 10.17x from 4.48x a year ago, indicating solid financial health.
The company maintains an 'A' credit rating for corporate bonds and complies with all financial covenants including a debt ratio below 500%.
[AI Summary]HD Construction Equipment's merger with HD Hyundai Infracore has created significant economies of scale and product diversification, resulting in a surge in revenue and profits. Despite a large increase in share count, EPS more than doubled, proving the merger's accretion. Ongoing share buybacks and cancellations further enhance shareholder value, while the stable debt profile and improved interest coverage reflect a strengthened financial foundation.
KOSPI Filing Information
Filing: [Correction of Description] Quarterly Report (2026.03)