Hyundai Engineering & Construction (A000720) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue reached KRW 6,281 billion, achieving 22.9% of the annual plan, with operating profit at KRW 180.9 billion and net profit at KRW 206.8 billion, reflecting improved profitability year-over-year.

• Order backlog stands at KRW 92,324 billion, securing 3.4 years of workload, with new orders in 1Q26 totaling KRW 3,962 billion, or 11.9% of the annual target.

Financial highlights

• Revenue decreased 15.8% year-over-year and 22.1% sequentially; gross profit margin improved to 8.0%, up 1.1 percentage points year-over-year.

• Operating profit margin remained stable at 2.9%, while net profit margin rose to 3.3%, up 1.1 percentage points year-over-year.

• Net profit attributable to owners of the parent increased 44.1% year-over-year to KRW 173.5 billion.

Outlook and guidance

• Core product orders are expected to begin in Q2, with a low base effect anticipated to support year-over-year growth.