Hyundai Engineering & Construction (000720) Q2 2026 earnings summary

Executive summary

• Achieved 68.3% of annual new order target and 47.9% of annual revenue target for 1H 2026.

• Operating profit reached 55.3% of the yearly goal, with a 2.8% year-over-year increase.

• Order backlog stands at KRW 103,983 billion, securing 3.8 years of workload.

• Revenue for the first half of 2026 was KRW 13,124 billion, with operating income of KRW 443 billion and net income attributable to controlling interests of KRW 289.9 billion.

• The company continues to expand in energy, infrastructure, and overseas markets, focusing on sustainable growth and digital transformation.

Financial highlights

• 1H 2026 revenue was KRW 13,124 billion, down 13.5% year-over-year.

• Operating profit for 1H 2026 was KRW 443 billion, up 2.8% year-over-year, with a margin of 3.4%.

• Net profit for 1H 2026 was KRW 364 billion, up 11.8% year-over-year, with a margin of 2.8%.

• Gross profit margin improved to 8.0%, up 1.5 percentage points year-over-year.

• Cash and cash equivalents at period end: KRW 3,488.9 billion.

Outlook and guidance

• New orders and revenue are tracking below 70% and 50% of annual targets, respectively, at the half-year mark.

• The company is executing a mid- to long-term strategy focused on energy-centric growth, expansion into advanced overseas markets, and strengthening core product competitiveness.

• Dividend policy for 2025–2027 aims for a minimum payout of KRW 800 per share and a total shareholder return of at least 25%.

• Large-scale overseas projects and construction rights are expected to support future backlog.