Hyundai Engineering & Construction (A000720) Q1 2025 earnings summary

Executive summary

• New orders reached KRW 9.4 trillion in 1Q25, achieving 30% of the annual target, with a focus on competitive edge products and core capabilities.

• Revenue for Q1 2025 was KRW 7,455.6 billion, down 12.8% year-over-year; operating profit was KRW 213.7 billion, a 14.9% decrease year-over-year.

• Operating profit margin was 2.9%, showing gradual improvement in profitability.

• Net income attributable to owners was KRW 120.4 billion, down from KRW 155.4 billion in Q1 2024.

• The company maintained a strong cash position with KRW 20,960.2 billion in cash and cash equivalents at quarter-end.

Financial highlights

• Gross profit margin for Q1 2025 was 6.9%, up 0.7 percentage points from the previous year.

• Earnings before tax declined 32.2% year-over-year to KRW 205.3 billion.

• Basic EPS for common shares was KRW 1,071, compared to KRW 1,383 in Q1 2024.

• Cash flows from operating activities were negative at KRW -1,209.2 billion, reflecting working capital outflows.

• Total assets stood at KRW 26,768.6 billion, with total liabilities at KRW 16,977.9 billion and total equity at KRW 9,790.8 billion.

Outlook and guidance

• Profitability is expected to gradually improve, supported by a strong backlog and focus on high-margin projects.

• The company is focusing on differentiated order strategies in domestic and overseas markets, emphasizing energy transition, data centers, and high-value infrastructure.

• Strategic expansion into global energy and advanced markets, with a focus on nuclear, SMR, and renewable energy projects.