Samsung E&A (A028050) Q2 2025 earnings summary

Executive summary

• Achieved strong 1H25 results with consolidated sales of KRW 4.28T, operating profit of KRW 338.2B, and net income of KRW 298.9B, reflecting significant year-over-year growth.

• Maintained a robust order backlog with major new project wins in Saudi Arabia and Malaysia, and continued strong performance in both hydrocarbon and non-hydrocarbon segments.

• Operating profit margin (OPM) reached 7.9% and gross profit margin (GPM) 14.2% for 1H25.

• Stable operating profit attributed to successful execution of major projects and ongoing focus on R&D and green solutions.

Financial highlights

• 1H25 sales up 15.7% YoY to KRW 4.3T; operating profit up 28.3% YoY to KRW 338.2B.

• 2Q25 sales of KRW 2.2T (+18.9% YoY), gross profit KRW 314.1B (+20.7% YoY), and net profit KRW 141.7B (+31.0% YoY).

• SG&A expenses for 2Q25 were KRW 133.2B, with a ratio of 6.1%.

• Net cash position improved to KRW 4.06T, up 35.7% from FY2024.

• Basic EPS for H1 2025 was KRW 1,486.

Outlook and guidance

• 1H25 performance achieved 23% of annual new order guidance, 45% of sales, and 48% of operating profit targets.

• Order backlog remains strong, with major projects in Saudi Arabia, Malaysia, and continued expansion in green and bio segments.

• Management expects continued growth in both hydrocarbon and non-hydrocarbon businesses, supported by global energy transition trends and infrastructure investments.