Hyundai Engineering & Construction (A000720) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached KRW 32.7 trillion, up 10.2% year-over-year, exceeding the annual target by 10%.

• New orders totaled KRW 30.5 trillion, achieving 105.3% of the yearly target despite a 6% decline from the previous year.

• FY24 ended with a backlog of KRW 89.9 trillion, a slight increase from the prior year.

Financial highlights

• Operating profit turned to a loss of KRW -1,263.4 billion in FY24 from a profit of KRW 785.4 billion in FY23.

• Net profit also turned negative at KRW -766.2 billion, compared to KRW 654.3 billion in FY23.

• Gross profit margin declined to 5.7% from 5.8% year-over-year.

• Quarterly revenue in Q4 2024 was KRW 7,246.9 billion, down 15.7% year-over-year and 12.2% sequentially.

Outlook and guidance

• FY25 revenue is projected at KRW 30.4 trillion, with new orders expected to reach KRW 31.1 trillion.

• Operating profit for FY25 is forecasted to recover to KRW 1,183 billion.

• Profitability is expected to improve due to a more favorable revenue mix.