Daewoo Engineering has shown significant improvement in profitability, doubling its operating profit despite a decline in revenue during the first half of the year.
On August 4, Daewoo Engineering announced that it recorded consolidated revenue of 3.9949 trillion won, operating profit of 487.9 billion won, and net profit of 363 billion won for the first half of 2026.
Revenue decreased by 8.2% from 4.35 trillion won in the same period last year. Revenue by business segment included 2.6656 trillion won from the construction division, 743.3 billion won from civil engineering, 511.5 billion won from the plant division, and 74.5 billion won from other consolidated subsidiaries.
In contrast, operating profit increased by 109.0% compared to 233.5 billion won in the same period last year. The operating profit margin rose significantly from 5.4% in the first half of last year to 12.2% this year. Net profit surged from 15 billion won last year to 363 billion won.
A Daewoo Engineering official explained, “Although revenue slightly decreased due to a reduction in ongoing projects, the stabilization of cost rates and improved profitability in the construction division contributed to a substantial increase in operating profit.”
New orders for the first half of the year reached 7.1285 trillion won, a 22.4% increase from 5.8224 trillion won in the same period last year. The company secured contracts primarily in domestic construction projects, including the redevelopment of Seongnam Shinheung District 3, residential complexes in Cheonan Seongjeong-dong, and the third Pangyo Techno Valley in Seongnam.
As of the end of the first half, the order backlog stood at 53.4019 trillion won, equivalent to approximately 6.6 years of work based on annual revenue.
Daewoo Engineering has also raised its annual new order target from 18 trillion won to 27 trillion won, following the visibility of large project opportunities such as the Papua New Guinea LNG and Mozambique Rovuma LNG.
While the construction industry continues to face cost pressures and a selective approach to new orders, Daewoo Engineering's performance reflects a management focus on improving profitability rather than just expanding size.
The company plans to expand its presence in domestic and international markets, focusing on core sectors such as nuclear power and LNG, while strengthening its bids in high-value areas like overseas urban development projects, data centers, and urban renewal projects.
A Daewoo Engineering official stated, “We will do our best to exceed this year’s targets through the expansion of quality orders and thorough risk management.”
* This article has been translated by AI.
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