HD Hyundai Electric is broadening its growth base beyond ultra-high-voltage transformers into distribution equipment and battery energy storage systems (BESS). Increased supplies of distribution equipment for semiconductor factories and data centers, together with revenue recognized from a large BESS project, lifted third-quarter revenue in its distribution equipment and new business segment by 85.8% year on year.
The results reflect the company's efforts to increase distribution equipment supplies targeting semiconductor factories and data centers and to pursue BESS projects.
According to HD Hyundai Electric's electronic disclosure on October 30, third-quarter revenue was 1,179.9 billion won and operating profit was 284.5 billion won, up 18.5% and 15.1%, respectively, from a year earlier. Revenue for the first three quarters totaled 3,358.2 billion won and operating profit reached 829.8 billion won, increases of 15.2% and 23.0%, respectively.
Distribution equipment and new business stood out for revenue growth. Third-quarter revenue in the segment reached 325.1 billion won, up 150.1 billion won from the same period last year. Its share of total revenue also rose from 17.6% to 27.6%.
This included approximately 125 billion won in revenue from the Anjwado BESS project, which the company won in December 2025. That accounted for a substantial portion of the segment's revenue increase. BESS equipment stores electricity in batteries and supplies it when needed to balance electricity supply and demand.
HD Hyundai Electric is HD Hyundai group's specialist in power equipment and energy solutions. It produces equipment needed to transmit and distribute electricity, including transformers, circuit breakers and switchgear. Although batteries are central to BESS, power conversion systems and energy management systems are also needed to use the stored electricity on the power grid.
Demand for distribution equipment is expanding, particularly at semiconductor factories and data centers. This equipment adjusts the voltage of electricity received through transmission networks and distributes it to suit end users. It includes distribution transformers, circuit breakers and switchgear.
An HD Hyundai Electric representative said, "In South Korea, sales of distribution equipment supplied to semiconductor factories and other facilities have increased, while demand for related products in North America is also growing, particularly for data centers."
Ordering practices are also increasingly shifting from purchases of individual products to packages combining multiple types of equipment. Distribution transformers lower voltage to suit end users, while circuit breakers interrupt current when electrical faults occur. Switchgear distributes and controls electricity supplied to multiple pieces of equipment.
A company representative said, "Orders bundling distribution transformers, circuit breakers and switchgear into packages are becoming increasingly common," adding, "The overall product range is performing well, rather than just one particular product."
In July 2026, HD Hyundai Electric signed a long-term framework agreement worth up to 1,121.2 billion won to supply power and distribution equipment to a global technology company. The distribution equipment portion is worth 553.9 billion won. Deliveries are scheduled to proceed in stages through 2028 in line with the data center construction schedule.
To meet growing demand, the company will invest an additional 198 billion won in its Cheongju distribution equipment campus in North Chungcheong Province. It plans to expand production facilities for distribution transformers and switchgear, adding capacity equivalent to approximately 250 billion won in annual revenue. Its distribution business revenue target for 2028 is at least 1,100 billion won.
The company is also expanding its BESS business into the United States. A representative example is the 200 MWh Rutile BESS project in Texas, awarded in 2025. The project is worth approximately 140 billion won, with HD Hyundai Electric responsible for engineering, procurement and construction.
A company representative explained, "BESS projects help stabilize the power grid, and we are targeting the US market extensively," adding, "We have also established a Texas subsidiary and secured orders locally."
Securities analysts are focusing on the growth potential of distribution equipment for North American data centers. Yuanta Securities analyst Son Hyeon-jeong said, "Distribution transformer revenue will expand from its previous level in the low 100 billion won range to as much as 300 billion won in 2027," adding, "Distribution transformers for North American data centers are central to the expansion of the Cheongju distribution equipment campus."
Son added, "Considering efficiency improvements from product standardization and increased production volumes, revenue growth in the distribution business is also highly likely to translate into profit growth."
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Original Korean article: KPI News
English brief by Korea Wind Intelligence, koreawindintel.com
