Operating Profit Reaches KRW 164.3 Billion, Setting a New Quarterly Record
Global Exports of Ultra-High Voltage Power Equipment Drive Performance
Hyosung Heavy Industries achieved its highest-ever quarterly operating profit in the second quarter of 2025. The company's performance was boosted by exports of ultra-high voltage power equipment to global markets, with both sales and operating profit surpassing market expectations.
On July 25, Hyosung Heavy Industries announced its provisional consolidated results for the second quarter of this year, reporting sales of KRW 1.5253 trillion, operating profit of KRW 164.3 billion, and net profit of KRW 87.3 billion. Compared to the same period last year, sales increased by 27.8%, and operating profit surged by 162.1%. Net profit also rose by 209.7% over the same period.
Hyosung Heavy Industries showcased intelligent power equipment solutions for the AI era at the ELECS KOREA 2025 exhibition. Hyosung Heavy Industries
The main driver of this improved performance was the heavy industries division. In the second quarter, this division recorded sales of KRW 1.0611 trillion and operating profit of KRW 168.5 billion, both the highest ever for a single quarter. The operating profit margin reached 15.9%. Profitability improved significantly as global investments in power grids expanded, particularly in the Americas, Europe, and the Middle East.
In the second quarter alone, the heavy industries division secured new orders worth KRW 2.197 trillion, and its order backlog expanded to KRW 10.7 trillion. This represents an increase of more than 60% compared to the same period last year. The company signed its largest-ever single contract for the supply of gas-insulated switchgear (GIS) with a U.S. nuclear power plant operator, and also secured a large-scale contract for ultra-high voltage transformers with Scottish Power, a transmission company in Scotland, United Kingdom. Currently, a new dedicated plant for the export of ultra-high voltage GIS is under construction in Changwon.
In contrast, the construction division posted a temporary loss due to conservative accounting practices. Second-quarter sales reached KRW 463.2 billion, up 34.5% from the previous quarter, but the division recorded an operating loss of KRW 4.2 billion, turning to a deficit. The company explained that this was the result of proactively reflecting losses due to uncertainty in receivables collection at certain sites. The company expects performance to normalize in the second half of the year.
Along with strong earnings, the company’s financial structure also improved. As of the end of the second quarter, the debt ratio stood at 208.7%, down 95.0 percentage points from 303.7% in the same period last year. The net debt ratio also dropped to less than half, falling from 91.7% to 42.1%. Total borrowings decreased by 21.5% year-on-year to KRW 1.0861 trillion.
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