Hyosung Heavy Industries (298040) Q1 2026 earnings summary

Executive summary

• Achieved consolidated sales revenue of KRW 1,358.2 bn in 1Q 2026, up 26.3% year-over-year but down 22.1% sequentially from 4Q 2025.

• Net profit for 1Q 2026 was KRW 91.3 bn, a decrease from both 1Q 2025 and 4Q 2025.

• Record-high new orders in Heavy Industries and Construction divisions, with significant backlog growth, especially in the U.S. market.

Financial highlights

• Gross profit margin was 19.9% in 1Q 2026, down from 22.5% in 4Q 2025 but up from 18.0% in 1Q 2025.

• Operating profit reached KRW 152.3 bn (11.2% margin), lower than 4Q 2025 but higher than 1Q 2025.

• EBITDA for 1Q 2026 was KRW 177.3 bn, with a margin of 13.1%.

• Net debt decreased to KRW 404.4 bn as of March 2026, with a net debt to equity ratio of 15.9%.

• Cash flow from operations was KRW 272.3 bn in 1Q 2026.

Outlook and guidance

• Earnings expected to improve in 2Q 2026 as high-margin orders are executed.

• Continued focus on risk management and selective bidding to secure high-quality projects.