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HD Hyundai Electric’s Alabama production facility in the United States. (Photo: HD Hyundai Electric) |
[Alpha Biz= Ellie Kim] South Korea’s three largest power equipment makers—HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric—have posted a combined order backlog exceeding KRW 32 trillion as of Q1 2026, marking an all-time high.
The surge reflects a strong supplier-driven market fueled by aging U.S. power grid replacement cycles and a global boom in AI data center construction. The combined backlog of approximately KRW 32.35 trillion suggests the companies have secured four to five years’ worth of work.
Hyosung Heavy Industries recorded the sharpest growth, with new orders in its industrial division more than doubling year-on-year to KRW 4.17 trillion. Its total backlog reached KRW 15.1 trillion—the largest among the three—supported by a landmark KRW 787.1 billion ultra-high-voltage transformer supply contract with a major U.S. transmission operator. The deal also cemented its position in the 765kV market, with more than half of its backlog now tied to North America.
HD Hyundai Electric also delivered record performance, with Q1 new orders rising 34.6% year-on-year to $1.8 billion. Its total backlog climbed to $7.89 billion (approximately KRW 11.9 trillion), driven by a selective strategy focused on high-margin products and strong pricing power in North America.
Meanwhile, LS Electric expanded its presence in the global data center market by securing major contracts with Amazon Web Services, including a KRW 170 billion switchgear supply deal. Its total backlog reached KRW 5.64 trillion.
The strong order pipeline is translating into robust earnings growth. LS Electric reported Q1 revenue of KRW 1.38 trillion and operating profit of KRW 126.6 billion, up 33% and 45% year-on-year, respectively, with North American sales surging about 80%.
HD Hyundai Electric posted standout profitability, with an operating margin of 24.9% on revenue of KRW 1.04 trillion and operating profit of KRW 258.3 billion. Growth was driven by rising demand for power transformers and rotating machinery, particularly in North America.
Hyosung Heavy Industries also maintained solid growth, with Q1 revenue of KRW 880.7 billion and operating profit of KRW 117.7 billion, supported by an increasing share of high-quality, high-margin orders.
To meet surging demand, all three companies are accelerating capacity expansion. HD Hyundai Electric is investing $200 million in a new transformer plant in Alabama, while LS Electric is expanding its Utah facility. Hyosung plans to boost production capacity at its Memphis plant by over 50% by 2028.
The sustained order momentum suggests a prolonged upcycle for the sector, underpinned by structural demand from electrification and AI-driven infrastructure expansion.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
