Daewoo E&C Posts Strong Q1 Profit Growth Amid Revenue Dip

Daewoo Engineering & Construction has announced a significant surge in its first-quarter financial performance, with operating profit soaring by 68.9% compared to the previous year. This robust growth, reaching 255.6 billion won, is a clear indicator of the company's strengthening profitability. The company attributes this success primarily to improved profitability in its architectural business sector, where projects initiated during periods of rising construction costs are now nearing completion.

Despite the impressive rise in operating profit, Daewoo E&C experienced a slight dip in revenue, which fell by 6.0% year-on-year to 1.9514 trillion won. This revenue decrease is understood within the context of project timelines and the completion of certain large-scale ventures. However, the company has bolstered its future prospects by securing new orders totaling 3.4212 trillion won, a substantial 21.2% increase from the previous year. This influx of new business is largely fueled by domestic urban regeneration projects, such as the Sajik 4 District redevelopment in Busan and the Cheonan Eupseong 3 A1BL project.

With these new orders, Daewoo E&C has secured a substantial backlog of approximately 51.8902 trillion won, equivalent to about 6.4 years of work. This provides a strong foundation and visibility for future earnings. Looking ahead, the company plans to focus on strengthening its core business operations and expanding its order book in strategic areas, including nuclear power, LNG facilities, and ports.

From a domestic perspective in South Korea, Daewoo E&C's performance is a positive sign for the construction sector. The company's ability to enhance profitability even with fluctuating revenues demonstrates sound financial management. The significant increase in new orders signals confidence in the market and the company's competitive edge, particularly in urban regeneration. This sustained order backlog ensures stability and provides a platform for continued growth and development in key infrastructure and construction areas.

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We will strengthen our core business management and expand orders centered on core construction types such as nuclear power plants, LNG, and ports.