Hyundai Engineering & Construction (A000720) Q1 2025 earnings summary

Executive summary

• New orders reached KRW 9.4 trillion in 1Q25, achieving 30% of the annual target, with a focus on competitive edge products and core capabilities.

• Revenue for 1Q25 was KRW 7.5 trillion, representing 25% of the yearly target and a 12.8% decrease year-over-year due to a high base effect in 2024.

• Operating profit remained stable at KRW 214 billion, with an operating profit margin of 2.9%, showing gradual improvement in profitability.

Financial highlights

• Net profit for 1Q25 was KRW 166.7 billion, down 20.0% year-over-year.

• Gross profit margin improved to 6.9%, up 0.7 percentage points from the previous year.

• Earnings before tax declined 32.2% year-over-year to KRW 205.3 billion.

• Net profit attributable to owners was KRW 120.4 billion, down 22.5% year-over-year.

Outlook and guidance

• Profitability is expected to gradually improve, supported by a strong backlog and focus on high-margin projects.