Hyundai Construction Q1 Operating Profit at 213.7 Billion Won, Down 14.8% Year-on-Year

On April 29, Hyundai Construction announced that its consolidated operating profit for the first quarter of this year was 213.7 billion won, a decrease of 14.8% compared to the same period last year. Revenue was 7.4556 trillion won, down 12.8% over the same period.

First quarter orders amounted to 9.4301 trillion won. Although this represented a slight decrease from the same period last year, the company added that it had achieved more than 30% of its annual order target of 31.1 trillion won. Major mixed-use development projects such as the Gayang-dong CJ Complex Development and the Millennium Hilton Hotel, as well as urban renewal projects including the Busan Udong 3 District redevelopment, were secured. The order backlog stands at 98.1475 trillion won, securing approximately 3.2 years’ worth of work.

Hyundai Construction Gye-dong Office. Provided by Hyundai Construction

Previously, Hyundai Construction had posted an annual loss in the fourth quarter of last year, reflecting major losses from overseas subsidiaries and other factors. However, the company returned to profitability at the beginning of the new year. The company stated, "We successfully turned to profit immediately after the previous quarter, and as projects that began during the period of sharply rising construction costs are completed sequentially, and as progress accelerates at key sites with secured profitability, quarterly profitability is expected to recover gradually."

As progress accelerated at domestic and overseas sites, quarterly revenue reached 24.5% of the annual target of 30.4 trillion won. Cash and cash equivalents (including short-term financial products) were recorded at 4.2227 trillion won. The current ratio, which measures liquidity, was 144.2%, and the debt ratio was 173.4%.

A Hyundai Construction representative stated, "We will not only secure high value-added projects, but also simultaneously pursue energy innovation strategies such as large-scale nuclear power plants and small modular reactors (SMRs), as well as future growth engines like data centers and hydrogen." The representative added, "We plan to restructure our business model to focus on energy and profitability in order to overcome both domestic and international crises."