Hyundai Engineering & Construction (A000720) Q2 2024 earnings summary

Executive summary

• Revenue for 2Q24 reached KRW 17.2 trillion, up 30.1% year-over-year, achieving 57.8% of the annual target.

• Operating profit for the cumulative period was KRW 398.2 billion, a 0.3% increase year-over-year.

• Net profit for the cumulative period was KRW 354.5 billion, down 2.3% year-over-year.

• Major new orders included Saudi Jafurah Phase 2, SK EV Battery Plant, and Daejang-Hongdae Railway.

Financial highlights

• Cumulative revenue increased 30.1% year-over-year to KRW 17,166.5 billion.

• Gross profit margin declined to 5.1% from 5.9% year-over-year.

• Operating profit margin decreased to 2.3% from 3.0% year-over-year.

• Net profit margin fell to 2.1% from 2.8% year-over-year.

• Quarterly net profit for 2Q24 was KRW 146.1 billion, down 31.2% year-over-year and 29.9% sequentially.

Outlook and guidance

• New orders for 2Q24 reached KRW 16.7 trillion, representing 57.5% of the yearly target.

• Cumulative revenue achieved 57.8% of the annual target by 2Q24.