GS Engineering & Construction (006360) Q1 2026 earnings summary

Executive summary

• New orders in 1Q26 totaled KRW 2.6 trillion, a 44.1% decrease year-over-year and 62.1% decrease quarter-over-quarter.

• Sales for 1Q26 reached KRW 2.4 trillion, down 21.6% year-over-year and 19.5% sequentially.

• Operating profit for 1Q26 was KRW 73.5 billion, a 4.4% increase year-over-year but down from the previous quarter.

• Net income for 1Q26 was KRW 10.7 billion, a 22% decrease year-over-year and a significant drop from KRW 93.5 billion in Q4 2025.

• Gross margin for the quarter was 8.3%, compared to 9.5% in 1Q25.

Financial highlights

• Debt-to-equity ratio improved to 231.3%, a 2.9 percentage point improvement from year-end.

• Cash, cash equivalents, and short-term financial products stood at KRW 3.0 trillion.

• Total assets were KRW 18,541.8 billion, with liabilities of KRW 12,944.6 billion and equity of KRW 5,597.2 billion.

• Operating cash flow was negative at KRW -94.3 billion, and investing cash flow was negative at KRW -414.7 billion.

• Finance income was KRW 106.6 billion, but finance costs were higher at KRW 200.5 billion.

Outlook and guidance

• New orders in 1Q26 represent 14.6% of the annual guidance.

• The company is focusing on expanding renewable energy, modular construction, and global development businesses.

• Management expects continued volatility in construction and plant markets due to macroeconomic and geopolitical risks.

• No specific quantitative guidance was provided for the next quarter.