HD Hyundai Electric raised its order target for this year. Orders are expected to surge as demand to expand artificial intelligence (AI) data centers and to replace extra-high-voltage power grids, centered on North America, overlap.
On the 6th, HD Hyundai Electric changed its 2026 order target through a correction filing from $4.222 billion to $5.185 billion (about 6.8 trillion won). That is up 22.8% from the previous target. In dollar terms, it increased by $963 million (about 1.26 trillion won).
The company said it adjusted the order target as demand for its core product line, power transformers, has surged. Requests to supply 765 kV extra-high-voltage transformers are flooding in, in line with the replacement cycle of aging power grids in North America. HD Hyundai Electric is expanding a second plant, aiming to complete it in April next year to target the North American market.
Following transformers, demand is increasing across all product lines, including power distribution and rotating equipment. As AI data center expansions grow, demand has risen for distribution transformers that reliably allocate large-scale power. Demand is also increasing in the rotating equipment (generator) segment to prepare for emergencies such as blackouts.
An HD Hyundai Electric official said, "We adjusted the target by proactively reflecting the outlook for increased orders in key product lines, including extra-high-voltage power transformers, distribution transformers and rotating equipment," and added, "Along with top-line growth, we will thoroughly maintain a selective order-taking stance focused on profitability to achieve stable profit growth."