Hyundai Engineering & Construction, Q2 Operating Profit Decreases by 34.1%… Due to Rising Raw Material Prices, etc.

Hyundai Engineering & Construction announced on the 19th through a public disclosure that its operating profit for the second quarter of this year was KRW 147.3 billion, a decrease of 34.1% compared to the same period last year. This figure is 15.7% below the market forecast of KRW 174.7 billion.

Revenue increased by 20.4% year-on-year to KRW 8.6212 trillion, but net profit decreased by 31.2% to KRW 146.1 billion.

Hyundai E&C explained that the main reasons for the decline in operating profit were the continuous rise in raw material prices and additional costs incurred to enhance quality and safety.

Despite these cost increases, Hyundai E&C stated that it is making various efforts to stabilize profitability through business model expansion, such as new complex development projects and realizing profits through the sale of equity and stocks.

Additionally, the company expects to achieve its annual revenue target of KRW 29.7 trillion in the second half of the year, driven by the smooth progress of large overseas plant projects such as Saudi Arabia’s Jafurah Package 1 and Iraq’s Basra Refinery, and the expansion of domestic housing and data center businesses.

As of the end of the second quarter, Hyundai E&C’s order backlog amounted to KRW 90.1228 trillion, securing a foundation for mid- to long-term growth. The company emphasized its stable financial structure, with cash and cash equivalents of KRW 3.3912 trillion, a current ratio of 174.9%, and a debt ratio of 130.3%.

A Hyundai E&C representative stated, “We are pursuing a paradigm shift in core businesses to secure next-generation growth engines for sustainable growth, and we are concentrating all efforts on expanding high-value-added businesses and the energy value chain.”

The representative added, “We will demonstrate super-gap capabilities in the global construction market by advancing into large nuclear power plants overseas, constructing small modular reactors (SMRs), and leading projects in solar power, data centers, and national infrastructure.”

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