GS Engineering & Construction (006360) Q2 2024 earnings summary

Executive summary

• New orders in 1H24 reached KRW 8.3 trillion, up 46.7% year-over-year, driven by major overseas projects and strong domestic demand.

• Consolidated sales revenue in 1H24 was KRW 6.4 trillion, down 9.1% year-over-year, but quarterly sales in 2Q24 rose 7.4% sequentially to KRW 3.3 trillion.

• Operating profit in 1H24 was KRW 164.0 billion, marking a turnaround from a loss in 1H23; 2Q24 operating profit increased 32.5% from 1Q24.

• Net profit for 1H24 reached KRW 174.6 billion, compared to a loss in 1H23.

• The company operates six main business divisions, with Building & Housing contributing over 77% of total sales and a strong presence in both domestic and international markets.

Financial highlights

• Gross profit in 1H24 was KRW 549.8 billion, up 473.9% year-over-year.

• Debt-to-equity ratio improved to 251.5%, down 11 percentage points from 4Q23.

• Cash, cash equivalents, and short-term financial instruments totaled KRW 2.3 trillion.

• Total assets as of June 2024: KRW 17.56 trillion; total liabilities: KRW 12.57 trillion; equity: KRW 4.99 trillion.

• Basic EPS for H1 2024: KRW 1,906.

Outlook and guidance

• Achieved 42.7% of the annual housing presale target with 8,486 units sold in 1H24.

• The company aims to expand its global presence, especially in modular housing, water treatment, and green energy projects.

• Focus remains on sustainable growth, portfolio diversification, and strengthening risk management amid market uncertainties.