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October 2026 3Q26 Earnings Release
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This document is provided by HD Construction Equipment (the "Company") for informational purposes as a reference for investment decisions. The Company has not conducted an independent verification process for the information contained in this document. Furthermore, this document may include statements reflecting the Company’s views or expectations about the future. Such forward-looking statements are based on various assumptions about future events, some of which are beyond the Company’s control. These forward-looking statements involve certain risks and uncertainties that may result in actual outcomes significantly differing from those anticipated in the forward-looking statements. The implementation of certain matters may require further decision-making processes, including approval by shareholders or the board of directors at the relevant time. This document has been prepared as a reference for investors to assist in their investment decision-making. The Company and its employees make no guarantees or assurances regarding the content of this document and shall not bear any investment responsibility under any circumstances, including cases of negligence or other causes. The Company assumes no obligation to update or revise the forward-looking statements to reflect events or circumstances occurring after the date this document is provided. Disclaimer
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Contents 1. 3Q26 Results 2. EBIT Analysis 3. Analysis by Division 4. Financial Structure 5. Outlook [Appendix] 1. Sales Breakdown by Region & Division
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4 1. 3Q26 Results 3Q26 Results (Unit: KRW bn) ※ Based on K-IFRS consolidated financial statements ※ 2025 financialsare based on internal data under the assumption of a merger and have not been audited. 3Q25 2Q26 3Q26 QoQ YoY Sales 1,971.7 2,434.2 2,091.5 -14.1% +6.1% EBIT 127.3 248.9 157.7 -36.6% +23.9% EBIT Margin(%) 6.5% 10.2% 7.5% -2.7%p +1.1%p Net Financial Cost -17.8 -14.3 -14.8 3.4% -17.2% F/X Gains/Loses 35.4 18.3 -146.0 - - PretaxProfit 136.1 244.9 -4.0 - - Net Profit 101.2 180.7 1.8 -99.0% -98.2% Profitattributable to ownersof parent 102.5 180.4 1.9 -98.9% -98.1% Salesgrew +6% Y o Y thanks to steady sales of generator and industrial engines. EBIT also improved +24% Y o Y on the back of improved profitability from construction equipment division as well as solid profit contribution from the engine division. Growth of sales +6% YoY and EBIT +24% YoY
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5 Sales & EBIT (Unit: KRW bn) Sales (Unit: KRW bn) EBIT Construction Equipment Engine Industrial Vehicle Consol. Adjustment 394.0 1,971.7 Construction Equipment Engine Industrial Vehicle + Consol. Adjustment 200.6 59.1 1. 3Q26 Results 7.5% YoY +1.1%p EBIT Margin 6.8% YoY +1.3%p 14.0% YoY -0.5%p Construction Equipment Engine 1,605.7 317.8 118.4 -70.3 1,623.5 -42.4 76.2 127.3 66.4 Note. Based on the company's internal data. Consolidation adjustment are separately indicated 3Q25 3Q26 116.4 2,091.5 87.5 -6.2 109.9 -7.5 127.3 157.7 55.2 46.1 3Q25 3Q26 +6% YoY +24% YoY 394.0
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6 2. EBITAnalysis ※ Exchange rate average: 3Q251,386 KRW/USD→ 3Q26 1,444 KRW/USD,3Q251,619 KRW/EUR→ 3Q261,636 KRW/EUR EBIT Analysis EBIT grew +24% Y o Y thanks to volume growth and improvement in sales mix. Price hike and tariff refunds were additional positive factors towards EBIT. However, costs surged during the quarter due to 1) prolonged geopolitical risk in the Middle East and related increase in raw material costs and logistics expenses and 2) greater fixed costs related to the Gunsanplant expansion. (Unit: KRW bn) 127.3 15.0 -46.6 24.2 21.3 157.7 16.5 3Q25 Vol & Mix Chg. In Price Variable/Fixed Cost F/X Others 3Q26
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7 3. Analysis by Division– Construction Equipment Construction Equipment Despite weakness in ME/AF due to escalation in the Middle East, demand continued to recover in all other regions. In particular, infrastructure and mining demand supported firm sales of mid-to-large equipment. We are also expanding the foundation to achieve enhanced profitability via our parts sales strategy. Continued margin improvement driven by increased sales contribution from high-profitability regions and products EBIT: Improved region/product mix (Unit: KRW bn) Revenue : Positive on global demand recovery By Region 3Q25 3Q26 YoY Construction Equipment Sales 1,605.7 1,623.5 +1.1% Equipment Sales 1,443.0 1,447.3 +0.3% America NA 191.3 225.2 +17.7% LA 174.6 221.4 +26.8% EMEA EU 286.2 272.4 -4.8% ME/AF 280.9 213.0 -24.2% APAC/CIS Korea 154.4 160.4 +3.9% China 123.7 99.0 -20.0% India 80.2 101.5 +26.6% SEA/CIS/OC 113.2 147.4 +30.2% Others 38.3 6.9 -82.1% AM/PS Sales 162.7 176.2 +8.3% Construction Equipment EBIT 87.5 109.9 +25.7% EBIT Margin (%) 5.4% 6.8% +1.3%p
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8 3. Analysis by Division – Engine Engine Industrial Vessel Generator Others Defense Internal Vehicular Parts & Materials By Application Revenue grew +24% YoY, driven by growth in power generation engines on rising electricity demand and by higher industrial engine sales on the continued recovery in global construction equipment demand. EBIT rose 20% YoY on an improved product mix, despite higher costs related to the Gunsanplant. Going forward, long-term revenue and EBIT are expected to expand rapidly, driven by sales growth in large electric/gas generator engines and faster synergy creation. EBIT : Consistent double-digit margin Revenue : Generator engine sales growth 3Q25 3Q26 11% 5% 29% 38% 394.0 317.8 3Q25 3Q26 55.2 46.1 +20% YoY (Unit: KRW bn) 13% 13% 28% 28%
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9 4. Financial Structure Statement of Financial Position (Unit : KRW bn) ※ Based on K-IFRS consolidated financial statements ※ 2025 financialsare based on internal data under the assumption of a merger and have not been audited. Key Financial Ratios On top of investment for future growth and plans to enhance shareholders’ return, we will endeavor to further improve our financial structure. 2025 1Q26 2Q26 3Q26 Total Assets 8,838.9 9,297.1 9,615.3 9,111.7 Cash & Cash Equivalent 768.3 734.7 767.9 561.8 CurrentAssets 4,947.6 5,361.7 5,621.7 5,202.0 Fixed Assets 3,891.3 3,935.3 3,993.5 3,909.7 Total Liabilities 4,220.3 4,467.3 4,581.6 4,199.5 Debt 1,836.8 1,742.0 1,705.2 1,738.7 Net Debt 1,068.6 1,007.3 937.3 1,176.8 Total Shareholder’s Equity 4,618.5 4,829.8 5,033.6 4,912.1 Liabilities/Equity Ratio 91.4% 92.5% 91.0% 85.5% 85.5% 35.4% 24.0% Liabilities/Equity Ratio Debt/Equity Ratio Net Debt/Equity Ratio 2025 3Q26 Key financial ratios improved thanks to capital expansion and debt reduction.
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10 5. Outlook – Construction Equipment (Market) Market Outlook (Based on sales volume, ‘000 units) APAC/CIS: Market grows on expanding infrastructure investment and mining demand. MEA: Infrastructure investment and mining demand in AF remain solid. However, disruptions from the prolonged Middle East war creates uncertainty in 2H. LA: Solid demand thanks to mining and infrastructure investment, despite political and economic uncertainty. APAC/CIS, MEA, LA India,China, Korea India: Growth continues as government-led infrastructure investment expands. China: Market is recovering on expanding infrastructure investment and replacement demand, but price competition among local players is intensifying. Korea: Moderate growth continues thanks to replacement demand, despite weak construction activity. NorthAmerica,Europe NA: Data center investment and expanding rental demand lifts market outlook, despite high interest rates and a sluggish housing market. Europe: Growth continues onrental and replacement demand. Sluggish housing starts remain a constraint. Risk factors: Logistics disruptions from the prolonged Middle East war, crude oil supply disruptions and slowing demand in emerging markets, interest rate policies in key countries and tariff uncertainty. North America Europe China 2025 2026 AOP 3Q26 Update 2027E North America Europe China India APAC/CIS MEA LA Korea 573 635
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11 5. Outlook – Construction Equipment (Sales) NA/EU APAC/CIS / MEA / LA India/China/Korea (Unit : KRW bn) (Unit : KRW bn) (Unit : KRW bn) Growth from truck sales and new launches in core product lines NA : rowthand profitability both improve through expanded sales centered on next- generation new models and trucks, plus inventory normalization. EU : Growth was somewhat limited by a weak housing market and fewer sales of old models. Going forward, growth is expected to shift toward new products, including a broader next-generation lineup and a stronger 14T excavator/wheel loader. High growth in LA and APAC/CIS offsets the decline in MEA sales MEA: Weak due to ME logistics constraints and diesel supply disruption in some regions. Recovery expected once logistics normalize. APAC/CIS: Strong compact equipment sales in Oceania, expanded sales of ultra-large equipment in CIS, stronger channel support, and launch of a 20T ultra-economy model will accelerate growth. LA: Stable growth continues thanks to solid mining demand. Demand driven growth continues in the region India: Government-led infrastructure investment as well as expanded MEX/wheel loader sales sustains high growth. China: Growth is slowing due to intensified price competition and export logistics disruption. However, we remain profitability-centered backed by cost-improved model and focus on overseas construction volume. Korea: Expanded sales of 6/15T core models and next-generation new models. 3Q25 3Q26 NA EU 225.2 272.4 +4% YoY 3Q25 3Q26 +2% YoY MEA LA APAC/CIS 213.0 221.4 147.4 3Q25 3Q26 Korea China India 160.4 99.0 101.5 +1% YoY
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12 5. Outlook – Engine Industrial Parts & Materials Generator E-PP Defense Vehicular/ Vessel Internal/Others 2026E 2027E 2028E 2029E 2030E 2031E CAGR +12% Sales Outlook GrowthDriver Future Growth Platform : Electrification & Hydrogen Incheon Plant Capacity Expansion (GX22) Power Generation : Growing global electricity demand Industrial : Expandpresence in North America Gunsan Plant Completion : Ultra-Large / Defense / EPP
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13 5. Outlook – Generator Engine Our StrengthGlobal Demand Outlook Demand (2025) 28,200 TWh Demand (2030F) 33,600 TWh Global Electricity Demand 2015-2025(A) 2026-2030(IEA Fcst) Average Annual Increase +700TWh/yr +1,100TWh/yr Data centers' share in demand growth, 2025–2030F US Global ~9% ~50% ※ IEA (2026), Electricity 2026; IEA (2026), Key Questions on Energy and AI., figures are IEA forecasts Backup Solutions Flexible Production Capacity Leading Market Position Sustainable Power Technologies Mission-Critical Backup Power Rapid Response Capability High-Power Density Continuous Solutions Prime & Bridge Power Solutions 24/7 Baseload Operation Scalable Distributed Generation Lineup Expansion New backup power 1 to 3M W (Gas and Hydrogen Variants Under Evaluation) Extension to Lower-Displacement Platforms Improved Reliability, Durability & Serviceability 1 2 3
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15 [Reference] Sales Breakdown by Region & Division 1Q25 2Q25 3Q25 4Q25 2025 1Q26 2Q26 3Q26 YoY Sales 1,887.9 2,058.8 1,971.6 2,008.4 7,926.9 2,304.9 2,434.2 2,091.5 +6.1% Construction Equipment 1,340.0 1,472.9 1,443.0 1,474.6 5,730.5 1,748.8 1,823.4 1,447.3 +0.3% America NA 147.3 187.5 191.3 183.4 709.6 185.5 200.6 225.2 +17.7% LA 131.0 160.0 174.6 163.6 629.3 191.7 207.8 221.4 +26.8% EMEA EU 176.8 250.3 286.2 278.7 992.1 281.2 316.0 272.4 -4.8% ME/AF 197.1 274.8 280.9 304.7 1,057.5 331.3 416.1 213.0 -24.2% APAC/CIS Korea 244.6 173.0 154.4 103.2 675.3 285.4 216.3 160.4 +3.9% China 145.0 152.7 123.7 189.5 610.9 169.6 174.1 99.0 -20.0% India 146.0 100.9 80.2 110.8 437.9 157.0 123.2 101.5 +26.6% SEA/CIS/OC 135.0 141.1 113.2 106.7 496.0 133.3 165.9 147.4 +30.2% Other 17.3 32.4 38.3 33.9 122.0 13.8 3.3 6.9 -82.1% AM/PS 179.4 181.3 162.7 160.9 684.3 178.7 194.9 176.2 +8.3% Engine 304.9 369.0 317.8 334.6 1,326.4 336.1 386.1 394.0 +24.0% Industrial Vehicle 118.9 114.7 118.4 113.1 465.2 97.4 103.2 116.4 -1.7% Consolidation Adjustment -55.3 -79.1 -70.3 -74.8 -279.5 -56.1 -73.4 -42.4 - (Unit : KRW bn) ※ Note: Company source, Engine sales figures are presented before consolidation adjustments