Hyundai Engineering & Construction (A000720) Q4 2025 earnings summary

Executive summary

• Achieved 107.4% of annual new order target and 102.2% of annual revenue target for FY25, with consolidated new orders at KRW 33,439 billion and revenue at KRW 31,063 billion.

• Operating profit returned to positive territory at KRW 653 billion (2.1% margin), reversing prior year losses.

• Net profit reached KRW 559 billion, a significant turnaround from a net loss of KRW 766 billion in FY24.

Financial highlights

• Revenue decreased by 4.9% year-over-year to KRW 31,063 billion.

• Gross profit margin improved to 6.4%, with cost of sales ratio dropping 7.1 percentage points to 93.6%.

• SG&A expenses increased by 26.8% year-over-year to KRW 1,327 billion.

• Quarterly revenue in 4Q25 grew 11.2% year-over-year and 3.0% sequentially.

Outlook and guidance

• FY26 new order target set at KRW 33,400 billion, maintaining high order levels.

• Revenue projected to temporarily decline to KRW 27,400 billion due to plant completions and housing effects.

• Operating profit expected to rise to KRW 800 billion (2.9% margin) in FY26, driven by completion of high-cost projects and improved mix.