Hyundai Engineering & Construction (A000720) Q3 2025 earnings summary

Executive summary

• Cumulative new orders reached KRW 26,116 billion, achieving 83.9% of the annual target, with strong contributions from both domestic and overseas projects.

• Order backlog stands at KRW 96,091.4 billion as of September 30, 2025, securing 3.2 years of workload based on 2025 planned revenue.

• Cumulative revenue for 3Q25 was KRW 23,003 billion, representing 75.7% of the annual target, despite a 9.5% year-over-year decline.

• Operating profit improved 4.2% year-over-year to KRW 534.2 billion, a significant turnaround from a loss of KRW 1,263.4 billion in 2024.

• Net profit attributable to controlling interests was KRW 258.5 billion, nearly flat year-over-year and a recovery from a prior loss.

Financial highlights

• Gross profit margin increased to 6.0%, up 1.2 percentage points year-over-year, with gross profit at KRW 1,371.9 billion.

• SG&A expenses rose 17.8% year-over-year to KRW 838 billion.

• Earnings before tax declined 23.0% year-over-year to KRW 489 billion.

• Basic EPS for common stock was KRW 2,299, compared to a loss of KRW 1,501 in 2024.

• Cash and cash equivalents at period end were KRW 3,225.1 billion, down from KRW 5,130.4 billion at the end of 2024.

Outlook and guidance

• 76% of the yearly order intake target has been achieved by 3Q, indicating strong momentum toward full-year goals.

• 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.

• Strategic priorities include nuclear, renewable energy, hydrogen, and digital transformation to drive future growth.

• The company aims to maintain a total shareholder return ratio of at least 25% and a minimum dividend of KRW 800 per share.

• Backlog coverage ensures stable revenue streams for the next several years.