Hyundai Construction Reports Q2 Operating Profit of 147.3 Billion KRW, Down 34% Year-on-Year

Hyundai Construction announced on the 19th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 147.3 billion KRW, down 34.1% compared to the same period last year.

Second-quarter sales increased by 20.4% during the same period to 8.6212 trillion KRW. Net profit for the period decreased by 31.2% to 146.1 billion KRW.

Hyundai Construction Gyedong Building exterior. (Provided by Hyundai Construction)

Hyundai Construction's cumulative sales for the first half of the year rose 30.1% year-on-year to 17.1665 trillion KRW. Operating profit recorded a slight increase of 0.3% to 398.2 billion KRW. Net profit for the period was 354.5 billion KRW, down 2.3%.

Hyundai Construction stated, "Robust sales growth continues as major projects such as the Saudi Arabia Amiral project groundbreaking, Shahin ethylene facility, and Panama Metro Line 3 progress in earnest, along with the reflection of domestic large-scale housing project performance."

In the second half of the year, progress will be made at overseas large plant sites such as Saudi Jafurah Package 1 and Iraq Basra refinery. Domestic projects including housing and data centers are also expected to expand, leading to increased sales. The annual sales target is projected to be smoothly achieved at 29.7 trillion KRW. New consolidated orders in the first half reached 16.6645 trillion KRW, achieving 57.5% of the annual order target (29 trillion KRW). The order backlog stands at 90.1228 trillion KRW.

Cash and cash equivalents (including short-term financial instruments) amount to 3.3912 trillion KRW, with a current ratio indicating payment ability at 174.9% and a debt ratio of 130.3%.

A Hyundai Construction official said, "Due to the continuous rise in raw material prices and prolonged construction market downturn, we will focus on stabilizing profitability through business model expansion such as new complex development projects. We will lead the global construction market in areas including overseas expansion of large nuclear power plants, the first construction of small modular reactors (SMR), as well as solar power and data centers."