GS Engineering & Construction (006360) Q3 2024 earnings summary

Executive summary

• Achieved strong new order growth in 3Q24, with orders up 69.0% year-over-year to KRW 13.0 trillion, including major overseas projects.

• Quarterly sales were stable at KRW 3.1 trillion, a slight 0.1% increase year-over-year.

• Operating profit surged 35.9% year-over-year to KRW 81.8 billion in 3Q24, with cumulative operating profit turning positive.

• Net income attributable to controlling interests was ₩280.5 billion, compared to a loss of ₩481.9 billion in the prior year.

• The company maintained a strong order backlog and continued to secure new projects in both domestic and overseas markets.

Financial highlights

• New orders in 3Q24 totaled KRW 4.6 trillion; cumulative new orders for the year reached KRW 13.0 trillion, up 69.0% year-over-year.

• Cumulative sales for 3Q24 were KRW 9.5 trillion, down 6.3% year-over-year.

• Operating profit for 3Q24 was KRW 81.8 billion, up 35.9% year-over-year; cumulative operating profit for 3Q24 was KRW 245.7 billion, a turnaround from the previous year.

• Earnings before tax in 3Q24 were KRW 181.2 billion, including a KRW 127.7 billion gain from equity investment disposals.

• Debt-to-equity ratio stood at 238.4%.

Outlook and guidance

• Order backlogs increased 4.7% to KRW 56.7 trillion, supporting future revenue visibility.

• Overseas order backlog rose 26.8% year-over-year, indicating strong international demand.

• The company expects continued growth in construction and infrastructure, focusing on high-value projects and overseas expansion.

• Ongoing investments in renewable energy, modular construction, and smart home solutions are expected to drive future growth.

• Management is monitoring market volatility and regulatory changes, especially in the domestic housing market.