Samsung E&A (A028050) Q3 2024 earnings summary

Executive summary

• Achieved 11.5 Tn KRW in new orders, 7.4 Tn KRW in sales, and 675.8 Bn KRW in operating profit for 3Q 2024 YTD, representing 91%, 74%, and 84% of annual guidance, respectively.

• Revenue for the first nine months of 2024 was ₩7,388 billion, with operating income of ₩676 billion and net income of ₩528 billion, reflecting a year-over-year decline from 2023.

• New orders grew 70.3% year-over-year, while sales and operating profit declined 5.3% and 6.6% year-over-year, respectively.

• The business is diversified across hydrocarbon (44.4% of sales) and non-hydrocarbon (55.6%) plant engineering, with major clients in both domestic and international markets.

• Maintained stable operating profit through successful execution of major projects and a strong global order backlog.

Financial highlights

• Gross profit margin (GPM) reached 14.4% and operating profit margin (OPM) 9.1% for 3Q 2024 YTD.

• Quarterly sales were 2.3 Tn KRW (+6.5% YoY, -13.7% QoQ), with gross profit of 333.8 Bn KRW (+26.6% YoY, -15.7% QoQ).

• Net profit for the quarter was 158.2 Bn KRW (+1.5% YoY, -22.9% QoQ), with a net margin of 6.8%.

• Basic EPS was ₩3,270 for the period.

• SG&A expenses rose 17.9% YoY to 129.9 Bn KRW, with a ratio of 5.6%.

Outlook and guidance

• New orders, sales, and operating profit are tracking at 91%, 74%, and 84% of annual guidance, respectively.

• Hydrocarbon EPC order pipeline includes 16 projects totaling $27.0 Bn USD, with significant projects planned for 4Q 2024 and beyond.

• The company expects continued growth in plant orders, especially in energy transition and environmental projects.

• Ongoing investments in R&D and green solutions are expected to support future competitiveness.