Hyosung Heavy Industries (298040) Q1 2025 earnings summary

Executive summary

• Achieved historical high 1Q results with revenue of KRW 1,076.1 billion and strong profit growth, driven by global demand and improved overseas profitability.

• Operating profit reached KRW 102.4 billion, a significant year-over-year increase, with net profit attributable to owners at KRW 102.2 billion and basic EPS of KRW 10,971.

• The company operates two main segments: Heavy Industry (67.9% of sales) and Construction (31.5% of sales).

• Order backlog and new orders reached record levels, especially in ultra-high voltage power equipment and turnkey projects.

• Major investments and R&D continued, with R&D expenses at KRW 9.1 billion (0.85% of sales).

Financial highlights

• Sales revenue rose to KRW 1,076.1 billion, up 9.3% year-over-year but down 31.5% sequentially.

• Operating profit reached KRW 102.4 billion, up 82.2% year-over-year, with a margin of 9.5%.

• Net profit was KRW 103.6 billion, up 295.4% year-over-year.

• EBITDA stood at KRW 122.5 billion, up 43.9% year-over-year, with an EBITDA margin of 11.4%.

• Cash and cash equivalents at quarter-end were KRW 200.6 billion.

Outlook and guidance

• Continued expansion in global markets, especially US, Europe, Middle East, and Asia, expected to drive further growth.

• Focus on risk management and selective bidding in construction to maintain profitability.

• Focus areas include renewable energy, hydrogen infrastructure, and data center construction.

• Uncertainty remains due to potential US tariffs and global economic conditions.