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.

• Heavy industry accounted for 64.9% of sales, construction for 34.7%.

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

• The company continues to expand globally, focusing on eco-friendly and high-efficiency products, and invests in R&D for future growth.

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%.

• Basic EPS: KRW 9,370 for Q1 2026.

• Cash and cash equivalents at period end: KRW 212.3 bn.

Outlook and guidance

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

• The company is targeting growth in global markets, especially in Asia, Europe, and the Americas.

• Focus remains on expanding eco-friendly product lines and digital power solutions.

• Data center and hydrogen energy businesses are highlighted as new growth drivers.