Hyundai Engineering & Construction (A000720) Q2 2025 earnings summary

Executive summary

• New orders reached KRW 16.7 trillion in 1H25, achieving 53.7% of the annual target, with a focus on competitive products and core capabilities.

• Revenue for 1H25 was KRW 15.2 trillion, representing 49.9% of the yearly target and an 11.6% decrease year-over-year due to a high base effect in 2024.

• Operating profit improved to KRW 431 billion (OPM 2.8%), up 8.2% year-over-year, reflecting gradual profitability improvement.

• Backlog stood at KRW 94.8 trillion, securing 3.1 years of future revenue.

Financial highlights

• Gross profit margin increased to 6.5% in 1H25 from 5.1% in 1H24.

• Net profit for 1H25 was KRW 325.3 billion, down 8.2% year-over-year; net profit to owners of the parent company fell 29.7%.

• Earnings before tax dropped 26.4% year-over-year to KRW 405.4 billion.

• 2Q25 operating profit rose 47.3% year-over-year to KRW 217 billion, with a margin of 2.8%.

Outlook and guidance

• New order intake in 1H25 already surpassed half of the annual target, indicating strong order momentum for the remainder of the year.

• Backlog of 3.1 years provides revenue visibility and stability.