Samsung C&T (028260) Q1 2026 earnings summary

Executive summary

• Consolidated sales reached KRW 10.47 trillion in Q1 2026, up KRW 729 billion year-over-year but down KRW 366 billion sequentially from Q4 2025.

• Net profit was KRW 1.09 trillion, a KRW 149 billion increase year-over-year but a KRW 472 billion decrease from the previous quarter.

• Operating profit stood at KRW 720.4 billion, nearly flat year-over-year and down KRW 102 billion sequentially.

• The business is diversified across construction, trading, fashion, resort, food service/distribution, and bio segments, with trading and construction contributing the largest revenue shares.

• The company maintains a strong liquidity position, with cash and cash equivalents of KRW 23.1 trillion and total assets of KRW 105.1 trillion.

Financial highlights

• Gross profit rose to KRW 1.87 trillion, up KRW 116 billion year-over-year, with a gross margin of 17.9%.

• Operating margin was 6.9%, down 0.5 percentage points year-over-year and 0.7 points sequentially; adjusted margin excluding one-off costs was 7.8%.

• Non-operating profit surged to KRW 526 billion, up KRW 306 billion sequentially and KRW 90 billion year-over-year.

• Basic EPS: KRW 5,159 (common), KRW 5,172 (preferred).

• Cash flows from operations were KRW 1.15 trillion; investing outflows KRW 587.1 billion; financing inflows KRW 618 billion.

Outlook and guidance

• Engineering & Construction expects sales and operating profit to rise in 2Q26, driven by high-tech project momentum.

• Trading & Investment anticipates a partial QoQ decline in 2Q26 but targets full-year sales growth via market and product diversification.

• Fashion aims for continued YoY growth in 2Q and full year, focusing on product competitiveness and new brands.

• Biologics projects full-year sales growth of 15–20% YoY, with profitability stable; Epis Holdings expects over 10% sales growth.

• The company continues to target stable dividend payouts, raising the minimum annual dividend per share to KRW 2,500 for 2026–2028.