Hyundai Engineering & Construction (A000720) Q2 2026 earnings summary

Executive summary

• Achieved 68.3% of annual new order target and 47.9% of annual revenue target for 1H 2026.

• Operating profit reached 55.3% of the yearly goal, with a 2.8% year-over-year increase.

• Order backlog stands at KRW 103,983 billion, securing 3.8 years of workload.

Financial highlights

• 1H 2026 revenue was KRW 13,124 billion, down 13.5% year-over-year.

• Operating profit for 1H 2026 was KRW 443 billion, up 2.8% year-over-year, with a margin of 3.4%.

• Net profit for 1H 2026 was KRW 364 billion, up 11.8% year-over-year, with a margin of 2.8%.

• Gross profit margin improved to 8.0%, up 1.5 percentage points year-over-year.

• Cost of sales ratio decreased to 92.0%, down 1.5 percentage points year-over-year.

Outlook and guidance

• New orders and revenue are tracking below 70% and 50% of annual targets, respectively, at the half-year mark.

• Large-scale overseas projects and construction rights are expected to support future backlog.