Daewoo E&C Reports Operating Profit of 403.1 Billion KRW in 2024... Despite Decline, Outperforms Consensus Expectations 'Solid Performance'

Operating Profit Down 39% Year-on-Year, but 10% Above Market Expectations
New Orders Reach KRW 9.9 Trillion, Achieving 86% of Target (KRW 11.5 Trillion)
2025 Targets: Sales of KRW 8.4 Trillion, Orders of KRW 14.2 Trillion

Daewoo E&C announced on the 6th that its annual business performance for 2024 is sales of KRW 10.5036 trillion, operating profit of KRW 403.1 billion, and net profit of KRW 242.8 billion. The Q4 results were sales of KRW 2.647 trillion, operating profit of KRW 121.2 billion, and net profit of KRW 14.5 billion.

Daewoo E&C exceeded its 2024 sales target (KRW 10.4 trillion), achieving 101.0% of the goal. Although sales decreased by 9.8% compared to the previous year, looking at the performance by major business divisions, the Housing Construction Division recorded sales of KRW 6.8418 trillion, the Civil Engineering Division KRW 2.1704 trillion, the Plant Division KRW 1.1386 trillion, and other consolidated subsidiaries KRW 352.8 billion.

Operating profit decreased by 39.2% from the previous year's KRW 662.5 billion to KRW 403.1 billion, and net profit fell by 53.4% to KRW 242.8 billion. However, despite uncertain external conditions, Daewoo E&C's operating profit exceeded market expectations. According to the consensus by financial information provider FnGuide, Daewoo E&C's estimated operating profit for 2024 was KRW 351.4 billion, which was surpassed by more than 10%.

A Daewoo E&C official explained, "Although sales and operating profit declined due to a decrease in ongoing sites, rising cost ratios, and temporary additional costs reflected in some housing sites, the high-profit projects in the overseas plant division grew, allowing us to perform well despite the difficult environment."

Daewoo E&C recorded new orders of KRW 9.9128 trillion in 2024, achieving 86.2% of the target (KRW 11.5 trillion). It holds an order backlog of KRW 44.4401 trillion, which corresponds to about 4.2 years of annual sales. The company secured many new orders including large-scale projects such as the Seongnam Sujin 1 District redevelopment, Busan Namcheon-dong mixed-use complex, and Seoul Yeouido Gongjak Apartment reconstruction.

Daewoo E&C set its 2025 targets at sales of KRW 8.4 trillion and new orders of KRW 14.2 trillion. A Daewoo E&C official stated, "Considering the difficult domestic and international market conditions, we have set a conservative sales target, but we will lead sustainable growth through expanding new orders." He added that achieving the targets is possible through securing large overseas projects such as the Czech nuclear power plant, Iraqi navy and air force bases, and the Turkmenistan mineral fertilizer plant.