DL E&C, Operating Profit of 270.9 Billion KRW in 2024... 18% Decrease YoY

Sales Increase but Operating Profit Declines... Improvement Compared to Q4
Order Performance Across Housing, Civil Engineering, and Plant Sectors
Global Growth Expected Through SMR and Future Business Expansion

DL E&C announced on the 6th that it expects consolidated sales of KRW 8.3184 trillion and operating profit of KRW 270.9 billion for 2024. Last year, sales increased by 4% compared to the previous year, but operating profit decreased by 18% due to cost rate adjustments and bad debt reflections at its subsidiary DL Construction. Despite the real estate market downturn and economic uncertainties, it achieved 97% of the 2024 sales guidance, 93% of operating profit, and 92% of orders.

Fourth-quarter sales recorded KRW 2.4388 trillion, and operating profit was KRW 94.1 billion. Compared to the third quarter, sales, operating profit, and orders all showed an increasing trend in the fourth quarter, indicating continued performance improvement. Fourth-quarter sales increased by 27%, operating profit by 13%, and orders by 20%.

DL E&C continued its strategy of building a balanced business portfolio and selectively securing highly profitable projects. In the housing sector, it surpassed KRW 1 trillion in urban redevelopment projects, including Jamsil Woosung 4th and Dogok Gaepo Hanshin reconstruction and maintenance projects. In the civil engineering sector, it demonstrated its capabilities by securing the Yeongdong pumped-storage power plant construction project. In the plant sector, it secured the Bundang combined-cycle power plant modernization project and the installation of gas turbine generators at the S-OIL Onsan plant.

In particular, the small modular reactor (SMR) business, a future growth engine, is expected to perform well in the SMR market as the U.S. company X-Energy signed a large-scale investment contract with the global big tech company Amazon. DL E&C maintains industry-leading financial stability along with improved cost rates. The fourth-quarter cost rate improved to 88.2% compared to the third quarter. It holds KRW 2.0711 trillion in cash and cash equivalents and a net cash position of KRW 994 billion. Additionally, it has maintained the highest credit rating of ‘AA-’ in the construction sector for six consecutive years, establishing a stable financial structure.

DL E&C has set its 2025 annual targets at KRW 13.2 trillion in orders, KRW 7.8 trillion in sales, and KRW 520 billion in operating profit. It plans to continue pursuing a balanced business portfolio and a strategy of selectively securing highly profitable projects. A DL E&C official stated, “Based on thorough risk management and a solid financial structure, we will continue to secure high-quality new orders and maintain gradual performance improvement in 2025.”