Hyundai Engineering & Construction (A000720) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was KRW 25.4 trillion, up 20.8% year-over-year, achieving 85.6% of the annual target.

• Operating profit for 9M24 was KRW 513 billion, with net profit at KRW 394.6 billion.

• The company maintained a strong order backlog, with significant new contracts in both domestic and overseas markets, including large-scale infrastructure, energy, and residential projects.

• New orders reached KRW 22.3 trillion, representing 76.8% of the yearly target.

• The company continues to focus on risk management, ESG initiatives, and expanding its portfolio in renewable energy and advanced construction technologies.

Financial highlights

• Operating profit for 9M24 declined 20.0% year-over-year to KRW 513 billion.

• Net profit for 9M24 dropped 27.5% year-over-year to KRW 394.6 billion.

• Basic EPS for common shares was KRW 3,170, compared to KRW 4,767 for the previous year.

• Gross profit margin decreased by 1.3 percentage points to 4.8% for 9M24.

• Cash and cash equivalents at quarter-end were KRW 3.7 trillion.

Outlook and guidance

• Revenue and new orders are tracking ahead of annual targets, with 85.6% and 76.8% achieved, respectively, by the end of 3Q24.

• The company expects continued challenges from global economic uncertainty, high interest rates, and raw material price volatility.

• Strategic focus remains on selective bidding, risk management, and expanding into high-value markets such as SMR, renewables, and global infrastructure.

• The company aims to maintain stable financials and order backlog through diversified project portfolios and proactive risk controls.