Samsung E&A (028050) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in new orders, sales, and operating profit in 1H26, with performance exceeding annual guidance benchmarks for new orders (64%), sales (49%), and operating profit (58%).

• Delivered consolidated revenue of KRW 4,876.7 billion for H1 2026, with net income of KRW 345.8 billion and operating income of KRW 461.3 billion.

• Maintained a strong order backlog, with major new contracts in the Middle East and continued robust performance in advanced industries and new energy segments.

• Moody's credit rating at Baa1, reflecting stable financial health and prudent risk management.

Financial highlights

• 1H26 new orders reached KRW 7.6T (+188.3% YoY), sales KRW 4.9T (+14.0% YoY), and operating profit KRW 461.3B (+36.4% YoY).

• 2Q26 sales were KRW 2.6T (+19.8% YoY), gross profit KRW 412.3B (+31.3% YoY), and net profit KRW 182.5B (+28.8% YoY).

• Gross profit margin was 15.5% for H1 2026 and improved to 15.8% in 2Q26 (+1.4%p YoY); operating profit margin rose to 10.5% (+2.2%p YoY).

• Basic EPS: KRW 1,719 (down from KRW 3,150 in H1 2025).

• Cash and cash equivalents at period end: KRW 1,575.5 billion.

Outlook and guidance

• 1H26 performance indicates strong progress toward annual targets, with new orders, sales, and operating profit all tracking ahead of schedule.

• Continued focus on expanding differentiated competitiveness in hydrocarbon, advanced industries, and new energy sectors.

• Strategic investments in R&D and technology to support growth in LNG, clean energy, and environmental solutions.

• Ongoing risk management to address global market volatility and project execution challenges.