Hyosung Heavy Industries
298040 · KRXBroke its own industry's export record twice in a year, and is building a US transformer plant to keep it that way.
Who they are
Hyosung Heavy Industries is the heavy-equipment arm of South Korea's Hyosung Group, with a broader business portfolio than its Korean transformer-industry peers — alongside power equipment, it also runs construction and energy storage system (ESS) businesses. Its power-equipment division has become the fastest-growing part of that portfolio by a wide margin as US grid demand has surged.
What they do
Hyosung Heavy Industries manufactures high-voltage transformers, and in February 2026 it landed what was reported as the largest single export contract in Korean power-equipment industry history: a roughly KRW 787 billion deal to supply 765kV transformers to a major US transmission grid operator. To keep pace with that kind of demand, the company is investing more than $150 million to expand its existing 765kV transformer plant in Memphis, Tennessee.
How Hyosung Heavy Industries makes money
Transformer sales plus its construction and ESS segments, though power equipment is currently driving results. Among Korea's three major power-equipment makers, Hyosung Heavy Industries posted the largest profit growth rate in 2025. Combined with HD Hyundai Electric and LS Electric, the three companies' 2025 revenue totaled KRW 15.0102 trillion with operating profit of KRW 2.1692 trillion, and their combined order backlog reached roughly KRW 37.4 trillion by Q1 2026, up nearly KRW 8 trillion from year-end 2025.
The bigger trend
Hyosung Heavy Industries' broader portfolio (construction and ESS alongside transformers) makes it a slightly different bet than its more transformer-concentrated peers: if the AI grid-equipment supercycle eventually cools, it has other business lines to fall back on, whereas a pure-play transformer maker doesn't. For now, though, transformers are doing essentially all of the heavy lifting on profit growth.
Whether the Memphis plant expansion comes online fast enough to convert the February 2026 record contract and any follow-on orders into recognized revenue without extended delays, given that grain-oriented electrical steel availability, not factory floor space, is the binding constraint across the entire transformer industry.
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Frequently asked questions
Hyosung Heavy Industries is one business unit within the larger Hyosung Group, specifically the arm that makes power transformers along with construction and energy storage system (ESS) businesses.
Hyosung Heavy Industries signed a roughly 787 billion won deal to supply 765kV high-voltage transformers to a major US transmission grid operator, reported as the largest single export contract in Korean power-equipment industry history at the time.
Hyosung Heavy Industries operates a 765kV transformer plant in Memphis, Tennessee, which it is expanding with an investment of more than $150 million to meet growing US demand.
This page describes public value-chain positioning for informational purposes only. It is not investment advice, and inclusion here is not a recommendation to buy or sell any security. Figures reflect public reporting as of mid-2026 and may have changed since.