Hyundai Engineering & Construction (A000720) Q2 2025 earnings summary

Executive summary

• New orders in 1H25 reached KRW 16.7 trillion, achieving 53.7% of the annual target, with a focus on competitive products and core capabilities.

• Revenue for 1H25 was KRW 15.2 trillion, representing 49.9% of the yearly target and an 11.6% decrease year-over-year due to a high base effect in 2024.

• Operating profit improved to KRW 431 billion (OPM 2.8%), up 8.2% year-over-year, marking a return to profitability.

• Net income attributable to owners of the parent was KRW 214.9 billion, rebounding from the prior year’s loss.

• Order backlog stood at KRW 94.8 trillion, securing 3.1 years of future revenue.

Financial highlights

• Gross profit margin increased to 6.5% in 1H25 from 5.1% in 1H24.

• Net profit for 1H25 was KRW 325.3 billion, down 8.2% year-over-year; net profit to owners of the parent company fell 29.7%.

• Earnings before tax dropped 26.4% year-over-year to KRW 405.4 billion.

• Basic EPS (common) was KRW 1,912, up from KRW 1,338 in H1 2024.

• Cash and cash equivalents at period end were KRW 3.23 trillion.

Outlook and guidance

• New order intake in 1H25 already surpassed half of the annual target, indicating strong order momentum for the remainder of the year.

• The company is executing a mid- to long-term strategy focused on energy-centric growth, expansion into advanced overseas markets, and strengthening core product competitiveness.

• The order environment remains challenging domestically due to high interest rates and real estate market uncertainty, but overseas orders are robust, especially in energy and infrastructure.