Hyosung Heavy Industries (298040)

Hyosung Heavy Industries (298040) makes ultra-high-voltage transformers and grid equipment, and its Memphis plant is the only US facility that designs and builds 765kV units. A record ₩787 billion US order in February 2026 pushed its backlog to ₩15.1 trillion, and Q1 operating profit jumped 48.8% to ₩152.3 billion.

Ticker298040
ExchangeKOSPI
SectorIndustrials · Power Equipment & Construction
CountrySouth Korea
Held by ETFRISE AI Electricity Infrastructure ETF (0101N0)
WikidataQ109454371
Last updated2026-06-10
Financial snapshotas of2026-06-10

Next event:Next report · H1 2026 반기보고서 (semi-annual report), estimated · Estimated from Korea's 45-day semi-annual filing deadline; not company-confirmed. Last report: Q1 2026 분기보고서 filed 2026-05-14. (source)

Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-04-24)

Hyosung Heavy Industries posted Q1 2026 revenue of ₩1.358 trillion, up 26.2% year over year, with operating profit of ₩152.3 billion, up 48.8%, while booking a quarterly record ₩4.17 trillion of new orders that lifted the backlog to ₩15.1 trillion.

Revenue₩1.358조 (KRW 1,358.2 billion)+26.2%YoY
Operating profit₩1,523억 (KRW 152.3 billion)+48.8%YoY
New orders₩4.17조 (KRW 4,170 billion) · Quarterly record, including the ₩787 billion US 765kV order
Order backlog₩15.1조 (KRW 15.1 trillion)

Primary source

Recent & upcoming events

  • · Q1 2026 분기보고서 filed.Confirmed consolidated Q1 revenue of ₩1.358 trillion and operating profit of ₩152.3 billion in the regulatory filing. (source)
  • · FY2025 사업보고서 filed — record year.Full-year 2025 revenue of ₩5.969 trillion (+21.9%) with operating profit more than doubling to ₩747 billion (+106.1%) and net income of ₩502.8 billion, on a 12.5% operating margin. (source)
  • · Record ₩787 billion US 765kV transformer order.Signed a 787 billion won contract with a major US transmission operator for 765kV ultra-high-voltage transformers and reactors running to January 2031, the largest single-project order ever by a Korean power-equipment maker in the US. (source)

Consolidated figures are from Hyosung Heavy Industries' DART 분기보고서/사업보고서; orders and backlog are company disclosures reported by Seoul Economic Daily and Money Today.

Figures are as of 2026-06-10 and reflect the most recent public filings/IR releases; they are updated after each earnings report.

What does Hyosung Heavy Industries do?

Hyosung Heavy Industries builds the heavy end of the grid: power, distribution, and special transformers, shunt reactors, high- and medium-voltage switchgear, HVDC transmission systems, and STATCOM devices that stabilize power quality, alongside a construction arm. The power-equipment franchise is what changed the company’s earnings power. FY2025 revenue reached a record ₩5.969 trillion, up 21.9%, while operating profit more than doubled to ₩747 billion for a 12.5% margin, up from 7.4% a year earlier, with net income of ₩502.8 billion (DART 사업보고서, Seoul Shinmun). Overseas markets, led by the US, Europe, and the Middle East, drove the mix shift toward high-margin export work.

How is AI driving Hyosung Heavy Industries’ business?

Through the highest voltage class in the US grid. American utilities are planning 765kV networks to move power to AI data centers as US electricity demand is projected to surge about 25% over the next decade, and Hyosung’s Memphis plant is the only facility in the US that can design and produce 765kV ultra-high-voltage transformers; the company has supplied close to half of the 765kV transformers installed in the US and has led that market since the 2010s (Money Today, Feb 10, 2026). It plans to expand Memphis capacity by more than 50% by 2028 (Seoul Shinmun). The supply backdrop is acute, as Wood Mackenzie’s supply-chain analyst put it:

“Utilities are routinely turning to the import market to meet project timelines.”

— Ben Boucher, Senior Analyst, Supply Chain Data & Analytics, Wood Mackenzie (press release, Aug 2025)

Wood Mackenzie models a 30% US power-transformer supply deficit for 2025, with imports covering about 80% of supply, which is the gap the Korea AI Power Infrastructure concept monetizes (Wood Mackenzie).

What did Hyosung Heavy Industries report most recently?

In Q1 2026 (the quarter ended March 31, 2026), revenue was ₩1.358 trillion, up 26.2% year over year, and operating profit was ₩152.3 billion, up 48.8% (DART 분기보고서, Seoul Economic Daily). The quarter’s headline was orders: a record ₩4.17 trillion of new orders, far above market expectations, lifted the backlog to ₩15.1 trillion, anchored by the February ₩787 billion 765kV transformer and reactor contract with a US transmission operator that runs to January 2031 (Seoul Economic Daily, Money Today). Management expects earnings momentum to build as the high-margin orders flow into revenue recognition.

What are the risks for Hyosung Heavy Industries?

  • US concentration. The premium earnings stream depends on US grid capex and 765kV adoption; a slowdown or tariff shock would land on the highest-margin business first.
  • Backlog conversion. A ₩15.1 trillion backlog converts over years; cost inflation or project delays between signing and delivery can erode booked margins.
  • Construction drag. The domestic construction arm is cyclical and lower-margin, diluting the power-equipment story.
  • Supply response. Competitors are investing in US transformer capacity, and Wood Mackenzie expects the deficit to narrow late in the decade (Wood Mackenzie).

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Frequently asked questions about Hyosung Heavy Industries

What does Hyosung Heavy Industries do?

Hyosung Heavy Industries makes heavy electrical equipment: power, distribution, and special transformers, shunt reactors, high- and medium-voltage switchgear, HVDC transmission systems, and STATCOM grid-stability devices, plus a construction business. In FY2025 it reported record revenue of ₩5.969 trillion, up 21.9%, with operating profit more than doubling to ₩747 billion (DART 사업보고서, Seoul Shinmun).

Why is Hyosung Heavy Industries part of the Korea AI power infrastructure concept?

Because it owns the top of the US transformer market that AI demand is straining. Its Memphis plant is the only facility in the US that designs and produces 765kV ultra-high-voltage transformers, it has held the leading share of that market since the 2010s, and it has supplied close to half the 765kV transformers installed in the US (Money Today). US utilities are planning 765kV networks as power demand is projected to surge about 25% over the next decade.

What was Hyosung Heavy Industries' record US order?

In February 2026 it signed a ₩787 billion contract with a major US transmission operator for 765kV ultra-high-voltage transformers and reactors, running to January 2031 through its US sales unit HICO America. It is the largest order in the company's history and the largest single-project award ever won by a Korean power-equipment maker in the US (Money Today).

What did Hyosung Heavy Industries report most recently?

Q1 2026 revenue of ₩1.358 trillion, up 26.2% year over year, and operating profit of ₩152.3 billion, up 48.8% (DART 분기보고서). New orders hit a quarterly record of ₩4.17 trillion, lifting the order backlog to ₩15.1 trillion (Seoul Economic Daily).

When does Hyosung Heavy Industries next report earnings?

Korean issuers do not pre-announce earnings dates. The next regulatory filing is the H1 2026 반기보고서 (semi-annual report), due around August 14, 2026 under Korea's 45-day semi-annual deadline; that date is estimated, not company-confirmed. The company last filed its Q1 2026 분기보고서 on May 14, 2026 (DART).

Sources & references

  1. 효성중공업 분기보고서 (2026.03) · Q1 2026 quarterly report · Hyosung Heavy Industries / DART (FSS), 2026-05-14
  2. 효성중공업 사업보고서 (2025.12) · FY2025 annual report · Hyosung Heavy Industries / DART (FSS), 2026-03-23
  3. Hyosung Heavy Industries Q1 Operating Profit Jumps 48.8% to 152.3 Billion Won · Seoul Economic Daily, 2026-04-24
  4. 미국서 대박낸 조현준 승부수..효성중공업 7870억 수주 잭팟 · Money Today, 2026-02-10
  5. 효성중공업, 효성 조현준號 '공격 경영'… K전력기기 글로벌 시장 선도 · Seoul Shinmun, 2026-05-14
  6. Power transformers and distribution transformers will face supply deficits of 30% and 10% in 2025 · Wood Mackenzie, 2025-08-14