Hyosung Heavy Industries (298040) Q2 2026 earnings summary

Executive summary

• Earnings surged quarter-over-quarter, driven by high-margin Heavy Industries sales and stable Construction profitability.

• Record-high order backlog and robust new order growth, especially from the U.S., underpin long-term margin visibility.

• Operates in two main segments: heavy industry (power equipment, industrial machinery) and construction (residential, commercial, infrastructure).

• 24 consolidated subsidiaries, with major operations in Korea, China, India, USA, and Vietnam.

• Recent years marked by expansion in R&D, global contracts, and new business initiatives in hydrogen and energy storage.

Financial highlights

• 2Q 2026 sales revenue reached KRW 1,687.0 bn, up from KRW 1,358.2 bn in 1Q 2026 and KRW 1,525.3 bn in 2Q 2025.

• 2026 H1 consolidated revenue: KRW 3,045.2 billion; operating income: KRW 416.6 billion; net income: KRW 263.1 billion.

• Operating profit rose to KRW 264.3 bn (15.7% margin) in 2Q 2026.

• EBITDA margin improved to 17.1% in 2Q 2026.

• Basic EPS for H1 2026: KRW 27,905.

Outlook and guidance

• Full-year new order guidance raised to KRW 12.0 tn, implying 58% growth versus FY25.

• Focus on expanding global sales, especially in North America, Europe, and Asia.

• Continued investment in R&D for eco-friendly and digital power solutions.

• Strategic growth in hydrogen, energy storage, and data center infrastructure.