Hyosung Heavy (298040.KS) Q1 2026: Profit Leaps 49%, Backlog ₩20T
Power grid supercycle drives operating margin expansion to a quarterly high, even as a non-recurring base effect and a step-up in effective tax rate erase those gains at the net income line.
Source: Quarterly Report (분기보고서) — Filed May 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
Hyosung Heavy Industries posted its strongest quarterly operating result on record in the three months ended March 2026, as surging global demand for power infrastructure pushed consolidated revenue to ₩1.36 trillion — up 26.2% from a year earlier — and operating profit to ₩152.3 billion, up 48.8%. The operating margin expanded 170 basis points to 11.2%, validating the operating leverage thesis in a capital-intensive transformer and switchgear business whose fixed-cost base is largely already absorbed. The headline of operating strength was obscured at the net income line, however: reported net profit fell 11.9% to ₩91.3 billion, as ₩37.7 billion in non-recurring gains that had inflated the Q1 2025 base completely vanished and the effective tax rate surged from 20.6% to 29.3%. The most forward-looking number in the filing — the Heavy Industries order backlog — crossed ₩20 trillion for the first time, ending the quarter at ₩20.2 trillion, a 32.2% jump from year-end 2025 in a single quarter.
