GS Engineering & Construction Achieves 148.5 Billion Won Q3 Operating Profit on Cost Ratio Stabilization, Up 81.5% Year-on-Year

Third-quarter revenue up 3.2% to 3.208 trillion won
Debt ratio drops by 10 percentage points
Cost ratios stabilized by business division

GS Engineering & Construction announced on November 4 that its operating profit for the third quarter of this year was provisionally tallied at 148.5 billion won, an 81.5% increase compared to the same period last year.

Third-quarter revenue rose by 3.2% year-on-year to 3.208 trillion won. Net profit increased by 1.02% over the same period to 122.1 billion won.

As several construction and housing division projects with high cost ratios were completed, the operating margin also improved. The cumulative operating margin for the first to third quarters rose from 2.6% last year to 4.0%. The normalization of profit margins in the infrastructure and plant divisions also contributed to this improvement.

New orders in the third quarter amounted to 4.4529 trillion won, bringing the cumulative total for the year to 12.3386 trillion won. This represents 86.3% of the company’s guidance of 14.3 trillion won.

By division, the construction and housing division achieved results with projects such as the western urban public housing complex project near Ssangmun Station (583.6 billion won) and the Singil District 2 redevelopment and maintenance project (553.6 billion won). The infrastructure division led performance by winning the Busan New Port Jinhae New Port Container Terminal Phase 1-1 (Section 2) project (110 billion won).

GS Engineering & Construction’s debt ratio for the third quarter was 239.9%, down 10.1 percentage points from 250.0% at the end of last year.

A GS Engineering & Construction representative stated, "As a result of strengthening our fundamentals and internal stability, we have stabilized cost ratios by division and continuously reduced our debt ratio. Based on selective orders focused on profitability and a strategic business portfolio centered on competitive advantage, we will flexibly respond to market changes while actively pursuing stabilization of our growth foundation for the future."

This content was produced with the assistance of AI translation services.