KOSPI · UHV transformers · grid supercycle
Hyosung Heavy Industries
A world-class heavy-electrical maker supplying about half of the 765kV ultra-high-voltage transformers on US transmission grids, with a structural moat in Memphis — the only plant in the US that designs and builds 765kV, raising tariff, certification and lead-time barriers at once. FY2025 was a record — consolidated revenue KRW 5,968.5bn (+21.9%), operating profit KRW 747bn (+106%, 12.5% margin) — but the real metric is visibility: a power-equipment order backlog of KRW 20.2tn (3.4x revenue) pre-books revenue through 2028. AI data-center power demand and aging-grid replacement stretched transformer lead times to years, creating a sellers' market; the bottleneck now is capacity, not orders — the pace at which the Memphis expansion (~2x in 2026) converts backlog into revenue is what matters.
298040.KS Updated Jul 12, 2026 2 AI consumers· 1 recurring
Per the valuechain.wiki graph, Hyosung Heavy Industries is directly linked to 2 companies (1 supply, 0 revenue, 1 investment relationships) and reaches 3 companies within two hops; the links are backed by 7 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · KRW 5,968.5bn (2025 consolidated revenue, +21.9%) — record operating profit KRW 747bn (+106%, 12.5% margin) and net income KRW 502.8bn, with North-American UHV transformers driving the profit surge
- Segments · Heavy industries (transformers, breakers) · Construction (Harrington Place)
Revenue from
- US transmission-grid operators (765kV ultra-high-voltage transformers) High confidence
The epicenter of Hyosung's earnings surge — it supplies about half of the 765kV ultra-high-voltage transformers on US transmission grids and has led that segment since the early 2010s. In Feb 2026, via US arm HICO America, it won a record single order of USD 535.3M (~KRW 787bn) in 765kV transformers/reactors for a large utility. The end customer is undisclosed for competitive reasons (kept anonymous), but being the only 765kV producer in the US (Memphis) lifts both price and volume.Confirms KO MoneyToday Published Jun 18, 2026: Hyosung transformer orders sold out to 2028 on AI grid demandMentions KO Korean brokerages (Samsung/Yuanta/Shinhan Securities) Published May 5, 2026: Korean brokerages (Samsung KRW 4.3M / Yuanta KRW 5.0M / Shinhan KRW 2.9M) on Hyosung Heavy's US ultra-high-voltage & data-center upsideConfirms EN Hyosung Published Feb 11, 2026: Hyosung Heavy Industries to Supply 765kV Transmission Grid as a Full Package to the U.S.Confirms KO DART (Financial Supervisory Service) Published Feb 10, 2026: Single supply contract: 765kV transformers & reactors (US, USD 535.3M via HICO America) - Global UHV transformer export customers (Europe, Middle East, Oceania utilities) High confidence
The export-diversification axis that spreads US concentration risk — heavy-industry exports (KRW 1,636.1bn separate basis) now exceed domestic sales (KRW 1,229.9bn). It supplies UHV transformers/reactors to utilities such as the UK's SPEN and Scottish Power, Norway's Statnett, Australia's Powerlink and Denmark's Orsted (offshore wind), riding global grid-replacement and renewables-linkage demand.Confirms EN Seoul Economic Daily (EN) Published May 1, 2026: Korean Power Equipment Makers Clinch Record Orders on US Grid, AI BoomConfirms KO DART (Financial Supervisory Service) Published Mar 23, 2026: Hyosung Heavy Industries FY2025 Annual Business Report (DART) - Global ESS/BESS projects (Japan, Australia, etc.) Medium confidence
A new business opening a demand line distinct from the transformer cycle — ESS/BESS EPC aimed at renewables and grid-stabilization demand. After high-voltage ESS in Japan's Kansai/Kyushu (~KRW 64bn cumulative), it won Australia's Queensland Tangkam BESS for AUD 135M (~KRW 142.5bn, turnkey, 2027 COD). Bundling grid solutions with power equipment widens its order pipeline.Confirms KO Aju Business Daily Published May 27, 2026: Hyosung wins KRW 11bn ESS project in first year in JapanConfirms KO DART (Financial Supervisory Service) Published Feb 10, 2026: Single supply contract: 765kV transformers & reactors (US, USD 535.3M via HICO America)
Pays to
- Grain-oriented electrical steel (GOES, POSCO et al.) High confidence
The real bottleneck of the transformer supercycle — grain-oriented electrical steel (GOES), the core of the transformer core, is bought mainly from POSCO plus Samdong and TC Materials. GOES supply is tight worldwide, itself a cause of long transformer lead times and the upstream constraint on Hyosung's cost and ramp speed, with high dependence on a few suppliers led by POSCO.Confirms KO DART (Financial Supervisory Service) Published Mar 23, 2026: Hyosung Heavy Industries FY2025 Annual Business Report (DART) - Copper & power-component supply chain Medium confidence
The second axis of the cost ratio — copper for transformer windings and busbars, plus bushings, insulating oil and electrical parts. Copper prices have risen on US copper-tariff issues and major mine disruptions, pressuring margins as backlog converts to revenue (diversified suppliers).Confirms KO DART (Financial Supervisory Service) Published Mar 23, 2026: Hyosung Heavy Industries FY2025 Annual Business Report (DART)
Investors
- Hyosung Corp. (holding, 32.47%) High confidence
The axis binding Hyosung Heavy to the Hyosung Group structure — after the 2018 holding conversion, Hyosung Corp. became the largest shareholder (32.47%). A pure holding company managing subsidiary stakes, investments and group CI, it sees Hyosung Heavy's record earnings flow straight into its NAV and dividend receipts.Confirms KO DART (Financial Supervisory Service) Published Mar 23, 2026: Hyosung Heavy Industries FY2025 Annual Business Report (DART)
Investments
- Memphis US manufacturing base (HICO America) High confidence
The fix that turns the supercycle into revenue — Memphis, Tennessee is the only US plant that designs and builds 765kV, a localization base that lowers tariff, logistics and lead-time barriers at once. A $150M+ expansion roughly doubles capacity in 2026, accelerating conversion of the KRW 20tn backlog into actual revenue.Confirms EN Seoul Economic Daily (EN) Published May 1, 2026: Korean Power Equipment Makers Clinch Record Orders on US Grid, AI BoomConfirms KO DART (Financial Supervisory Service) Published Mar 23, 2026: Hyosung Heavy Industries FY2025 Annual Business Report (DART)
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Hyosung Heavy Industries | node | -21.5 | +36.8 | +143 | +164.5 | +482.9 | +12.3 |
| Hyosung | benef1 | +17 | -9.3 | -5.5 | -36.7 | +249.2 | +1.8 |
| POSCO Holdings | benef1 | +13.9 | +19.9 | +43 | -37.3 | +38.3 | -8.8 |
| POSCO Future M | benef2 | -17.7 | +97.6 | +16.3 | -43.6 | +56.5 | -32 |
YTD as of 2026-07-10 · source: Yahoo Finance
The thesis is how fast Hyosung converts transformer-supercycle visibility into earnings. The 106% FY2025 operating-profit jump came from North-American UHV transformer volume and price rising together, and the KRW 20.2tn backlog (+32%) effectively locks in years of revenue — hence brokerages lifting targets aggressively to KRW 2.9-5.0M (Samsung 4.3M, Yuanta 5.0M). The upside is the pace at which the ~2x Memphis expansion clears the bottleneck and turns backlog into revenue; the downside is rising GOES and copper costs (US copper tariffs) and construction weakness. Its graph ripple runs upstream to electrical steel (POSCO) and to holding company Hyosung Corp. (32.47%), and it shares the same 'AI data-center power demand' cycle with HD Hyundai Electric and LS Electric — the trio's combined backlog surpassing KRW 30tn shows the cycle's scale.
Analysis generated from returns as of 2026-05-05