Fact Summary
Hyosung Heavy Industries disclosed that its Q2 2026 consolidated operating profit reached KRW 264.3 billion (a record quarterly high, up 60.9% year-over-year), and its order backlog at the end of Q2 stood at KRW 17.5 trillion (up 63.0% year-over-year). Per the 2026 semi-annual report (receipt no. 20260813001554), cumulative first-half revenue was KRW 3.0451 trillion and operating profit was KRW 416.6 billion. In the first half of 2026, 71% of new orders in the Heavy Industries segment originated from the United States, and the company raised its 2026 full-year new order target from KRW 8.4 trillion to KRW 12 trillion.
Price-Change Context Note
Consolidated operating margin, which stood at 3.9% in 2021, trended upward to 12.5% in 2025 and 13.7% in the first half of 2026. The reference closing price (KRW 2,954,000 on 2026-08-14) followed a rise from KRW 2,831,000 on 2026-08-11 to KRW 3,017,000 on 2026-08-13, before falling approximately -2.1% from the previous day.
Business Overview — Segment Composition
Segment share of Q1 2026 (1Q26) consolidated revenue of KRW 1,358.2 billion, based on disclosure dated 2026-05-14 (A, source: quarterly report · KIND)
The Heavy Industries segment manufactures power equipment such as ultra-high-voltage transformers and circuit breakers, as well as ESS (energy storage systems), while the Construction segment handles plant and infrastructure construction. The consolidated order backlog at the end of Q2 2026 was KRW 17.5 trillion, up 63.0% year-over-year (media report, based on a disclosure dated 2026-07-31).
5-Year Financial Trend
| Period | Revenue | Operating Profit | Net Income | Operating Margin | Net Margin |
|---|---|---|---|---|---|
| 2021 | KRW 3.09T | KRW 120.1B | KRW 76.5B | 3.9% | 2.5% |
| 2022 | KRW 3.51T | KRW 143.2B | KRW 29.1B | 4.1% | 0.8% |
| 2023 | KRW 4.30T | KRW 257.8B | KRW 131.9B | 6.0% | 3.1% |
| 2024 | KRW 4.89T | KRW 362.5B | KRW 222.9B | 7.4% | 4.6% |
| 2025 | KRW 5.97T | KRW 747.0B | KRW 502.8B | 12.5% | 8.4% |
| H1 2026 (cumulative) | KRW 3.05T | KRW 416.6B | KRW 263.1B | 13.7% | 8.6% |
Basis: each year's annual business report / 2026 semi-annual report (consolidated) · A (actual) · receipt numbers refer to the system's authoritative financial data
Total equity increased approximately 68% year-over-year in 2024 (from KRW 1.2242 trillion to KRW 2.0556 trillion), but the cause could not be confirmed in the research materials and remains unconfirmed. Total assets at the end of H1 2026 (KRW 8.5550 trillion) increased from the end of 2025 (KRW 7.2279 trillion), which may be consistent with the expanding order backlog, though the detailed line-item changes remain unconfirmed.
North America Business · Power Infrastructure Demand
In December 2019, the company acquired Mitsubishi Electric's ultra-high-voltage transformer plant in Memphis, Tennessee (for USD 46.5 million) and began local production in 2020. In June 2026, it established a gas circuit breaker joint venture, 'HYOSUNG HICO BREAKER, LLC,' with a subsidiary of US-based Quanta Services, and plans to produce 72.5kV-800kV class ultra-high-voltage circuit breakers at a Pennsylvania plant starting in October. In February 2026, it signed a supply contract worth approximately KRW 787.0 billion with a US transmission grid operator for 765kV ultra-high-voltage transformers and reactors.
Competitor Comparison
| Company | Market Cap | P/E | P/B | US Transformer Market Share |
|---|---|---|---|---|
| Hyosung Heavy Industries | KRW 27.57T (2026-08-14, A) | approx. 54.8x (2025 results, A) | approx. 10.1-11.1x (A) | approx. 10% (original article's reference date unspecified, A) |
| HD Hyundai Electric | unconfirmed | 44.1x (current year, E/C) | 30.9x (current year, E/C) | approx. 20% (No.1, A) |
| LS ELECTRIC | approx. KRW 31.3T (2026-08-12) | unconfirmed | unconfirmed | unconfirmed (combined with Iljin Electric, the three Korean firms together hold approx. 40%+) |
P/E and P/B reference dates differ (Hyosung Heavy Industries figures are authoritative calculations based on the 2026-08-14 market price; HD Hyundai Electric figures are quoted from a brokerage report published 2026-06-16) · caution advised for direct comparison
Hyosung Heavy Industries was separately reported to hold the No.1 share in the US 765kV-class ultra-high-voltage transformer sub-market, while in the overall US transformer market across all voltage classes, HD Hyundai Electric was reported as No.1 with 20% and Hyosung Heavy Industries at around 10%. Under the preliminary determination of the 12th annual review of US anti-dumping duties, the rate is 4.32% for Hyosung Heavy Industries, 16.87% for LS ELECTRIC, and 0% for both HD Hyundai Electric and Iljin Electric.
Governance · Shareholder Status
The combined figure for Hyosung Corporation and special related parties is based on a DART substantial shareholding report received 2025-05-29 (A) · Cho Hyun-joon's figure is based on a shareholding report received 2026-01-21 (A) · National Pension Service's figure is based on a shareholding report received 2026-08-03 (A; per a substantial shareholding report received 2026-07-01, the figure was 10.13%)
| Date | Event |
|---|---|
| 2025-05-22–23 | Cho Hyun-joon sold 456,903 shares (4.90 percentage points) via block deal for approximately KRW 259.6 billion — reported as intended to fund inheritance tax payments (stake reduced to 9.99%) |
| 2025-05-29 | Reflects a change in shares held by Hyosung Corporation's special related parties, adjusting the combined stake to 43.96% |
| 2025-10-01 | National Pension Service substantial shareholding change, stake at 11.13% (-1.08pp) |
| 2026-01-21 | Cho Hyun-joon's stake increased slightly to 10.00% (+0.01pp) |
| 2026-07-01 | National Pension Service substantial shareholding change, stake at 10.13% (-1.00pp) |
The board of directors consists of three inside directors (CEO Woo Tae-hee, Cho Hyun-joon, and Park Nam-yong) and four outside directors (Park Jong-bae, Lee Eun-hang, Yoon Yeo-sun, and Choi Yoon-soo) (company's official IR page, accessed 2026-08-14). Total shares issued were 9,324,548 and treasury shares were 12,807 (0.14%), both as of 2025-12-31; any changes since 2026 remain unconfirmed. The equity tree for subsidiaries/sub-subsidiaries and details of related-party transactions remain unconfirmed due to source access limitations.
Key Risk Factors
In the Jamwon-dong mixed-use development project, whose completion-guarantee deadline arrived on 2026-07-31, the developer failed to apply for a use approval, resulting in a breach of the completion guarantee obligation, and Hyosung Heavy Industries decided to assume the original debtor's KRW 346.3 billion debt. This is a case in which the PF contingent liabilities of the Construction segment — a business the company runs alongside Heavy Industries — materialized as an actual loss, separate from the strong performance of the Heavy Industries segment. In addition, copper prices surged 47.37% year-over-year (as of 2026-08-14), pressuring transformer cost ratios, and domestic private construction orders fell 41.5% year-over-year in June 2026, weighing on the Construction segment. A past fine related to bid-rigging in KEPCO GIS procurement (approximately KRW 39.1 billion, covering 10 companies) and a consent decision related to a subcontracting law violation (a shared-growth fund of KRW 3.4296 billion) have been confirmed, but the timing of these events remains unconfirmed.
Valuation (Factual Multiples)
Calculation: Market capitalization (KRW 27,572,688,436,000, 2026-08-14) ÷ respective financial figures · calculated directly in the main session (A)
EV/EBITDA could not be calculated because depreciation figures were not obtained (unconfirmed). Consensus multiples based on 2026 estimated results were found as reference figures whose publisher and publication date are unclear, and due to differing formulas and reference points, they are difficult to compare directly with the authoritative figures above.
Supply-Demand Trends
The figures below are estimates based on a secondary source (alphasquare.co.kr), because primary KRX data collection failed due to an environment constraint (pykrx not installed), and have not been cross-checked against official KRX totals or reference dates.
Net buying direction by institutions and foreign investors reversed sharply on two trading days, 2026-07-30 and 08-06, resulting in high volatility during the period. Trading volume on 08-06 reached 78,194 shares, the period's highest, accompanied by large-scale foreign net selling (-22,354 shares). Margin loan balances and the foreign ownership limit utilization rate remain unconfirmed.
Macro Environment
| Factor | Reference-Date Figure | Transmission Channel |
|---|---|---|
| KRW/USD Exchange Rate | KRW 1,418.3 (2026-08-14) | A weaker won increases the won-converted value of US-bound export revenue |
| Copper (Electrolytic Copper) Price | +47.37% YoY (2026-08-14) | Pressures transformer winding cost ratios; partially passable through where cost-plus clauses apply |
| US 10-Year Treasury Yield | 4.68-4.70% (2026-08-14) | Affects financing costs for data center and power grid projects |
| US Anti-Dumping Duty on Transformers (Preliminary Determination) | 4.32% (Hyosung Heavy Industries) | Adds cost burden to exports from Korea; exposure trending down with expanded local production |
On August 10, 2026, Hyosung Heavy Industries, through a joint venture with ST Telemedia Global Data Centres (STT GDC), opened the 'STT Seoul 1' AI data center (30MW class) in Gasan-dong, Seoul. Increased orders for ultra-high-voltage transformers, driven by expanding AI data center and power grid investment, are observed to be the key background for the company's recent earnings improvement.
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Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR