1. Q2 Earnings: A Significant Beat

Hyosung Heavy Industries reported Q2 2025 revenue of 1.5253 trillion KRW, beating estimates by 14%, and operating profit of 164.3 billion KRW, surpassing expectations by a substantial 24%. Net profit reached 92.5 billion KRW, down from Q1 but still slightly above estimates. This strong performance is attributed to robust orders in the heavy industries segment, seasonal strength in the construction segment, and effective cost management.

2. Q1 to Q2 Growth: Key Drivers

Both revenue and operating profit increased compared to Q1 2025. This growth is driven by the seasonal strength in the construction segment, continued growth in heavy industries orders, and successful cost management initiatives creating a synergistic effect. The decrease in net profit is attributed to external factors such as increased financial expenses.

3. Opportunities and Risks

Strong order intake in heavy industries and the positive performance of the construction segment are key opportunities. However, macroeconomic factors (US interest rate hikes, exchange rate fluctuations), rising raw material prices, and high contingent liabilities remain key risk factors.

4. Investor Action Plan

While a positive short-term stock price trend is expected, a long-term investment strategy requires careful consideration of contingent liabilities, raw material price fluctuations, and macroeconomic uncertainties. Closely monitoring future disclosures regarding contingent liabilities and market reactions will be crucial.