Hyundai Engineering & Construction's order backlog surpassed 100 trillion won for the first time since its founding. First-half revenue declined, but operating profit rose, reflecting results from its profitability-focused management.
Hyundai E&C (000720.KS) reported first-half revenue of 13.1236 trillion won and operating profit of 442.7 billion won on a consolidated basis, the company said on the 31st. Revenue fell 13.5% from a year earlier, while operating profit rose 2.8%. The company achieved 55.3% of its annual operating profit target in the first half.
The order backlog reached 103.9831 trillion won, up 9.4% from a year earlier. It exceeded 100 trillion won for the first time since the company's founding. Securing approximately 3.8 years' worth of work, the company laid a foundation for mid- to long-term growth.
First-half new orders also reached 22.823 trillion won, up 36.4% from a year earlier. Large-scale overseas projects and products with a competitive edge drove the results. High-value-added projects based on group synergy, such as an electric arc furnace steel mill in the United States and the Bokjeong Station area mixed-use development project, were at the center.
Operating profit rose despite the revenue decline thanks to an improved cost ratio in the housing division and an expanded share of projects focused on adequate profitability. The company explained that operating profit had entered a recovery trend.
Financial soundness was also strengthened. Cash and cash equivalents (including short-term financial instruments) stood at 3.8646 trillion won. The debt ratio fell 19.6 percentage points to 155.2%, while the current ratio rose 0.3 percentage points to 148.2%. The company improved its financial soundness by expanding capital through asset revaluation. Its credit rating remains at AA-, the highest level in the industry.
Hyundai E&C plans to continue winning profitability-focused projects in the second half, responding to external environmental variables such as geopolitical risks. It will also actively seek out future growth engine businesses.
"Diversification of our business portfolio based on differentiated technological competitiveness and global execution capabilities is leading to tangible results," a Hyundai E&C official said. "We plan to solidify our competitive edge in sustainable energy fields such as large nuclear power plants, small modular reactors (SMR), and solar power, and to actively expand domestic and overseas business opportunities in new growth areas such as data centers and offshore wind power."
