Hyundai Engineering & Construction has surpassed 100 trillion won in backlog for the first half of the year, laying the groundwork for long-term growth. The company also reported a recovery in operating profit, aided by improved cost ratios in the housing sector.
On July 31, Hyundai Engineering & Construction announced its preliminary consolidated results for the first half of the year, reporting sales of 13.1236 trillion won and an operating profit of 442.7 billion won.
The company achieved an order intake of 22.823 trillion won, a 36.4% increase from the same period last year, driven by large-scale overseas projects and high-value contracts. Notable projects contributing to this growth include the construction of an electric arc furnace steel mill in the United States and the mixed-use development project at Bokjeong Station.
As a result, the backlog for the first half reached 103.9831 trillion won, marking a 9.4% increase from the previous year and surpassing the 100 trillion won milestone for the first time in the company's history. This amount corresponds to approximately 3.8 years' worth of work.
Sales decreased by 13.5% compared to the previous year (15.1763 trillion won), totaling 13.1236 trillion won. However, operating profit increased by 2.8% from the previous year (430.7 billion won) to 442.7 billion won, reflecting improvements in cost ratios and a greater focus on projects with adequate profitability, achieving 55.3% of the annual operating profit target.
Financial health indicators also showed improvement. The company reported cash and cash equivalents (including short-term financial products) of 3.8646 trillion won. Through asset revaluation, the debt ratio decreased by 19.6 percentage points to 155.2%. The current ratio increased by 0.3 percentage points to 148.2%, and the credit rating remained at the industry’s highest level of AA-.
Hyundai Engineering & Construction plans to continue securing strategic and profitability-focused projects in the second half of the year while concentrating on discovering new growth engines based on its 'H-Road' initiative.
A representative from Hyundai Engineering & Construction stated, “Our differentiated technological competitiveness and global execution capabilities are leading to visible results in diversifying our business portfolio. We aim to solidify our competitive edge in sustainable energy sectors, including large nuclear power plants, small modular reactors (SMRs), and solar energy, while expanding business opportunities in new growth areas such as data centers and offshore wind power.”
Kim Do-yeop, a researcher at Yuanta Securities, noted, “Large projects such as the electric arc furnace steel mill in the U.S., the Bokjeong Station mixed-use development, and the gas processing facility in Kazakhstan have driven the first-half results. The second half also has projects like Papua New Guinea LNG, Wando Geumil offshore wind, data centers, and urban redevelopment in the pipeline, making it likely that the annual order target will be met.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.