Hyundai E&C (000720)

**Business Overview** Hyundai Engineering & Construction, established in 1950, is a leading general construction company in Korea, operating across the entire construction industry value chain, including civil engineering, building/housing, plant, nuclear power, power generation, transmission/substation, and environment. Its key services include civil engineering projects such as apartment, public building, and advanced building construction, tunnel, bridge, and road construction, and land development, as well as petrochemical plant and nuclear power plant construction. According to its 2024 business report, the building/housing segment accounts for 64.9% of total revenue, and the plant segment accounts for 21.6%, together representing over 80% of revenue. Its main clients include domestic and international public institutions and ordering parties. Notably, the company has secured a leading market position by ranking first in orders received in the domestic urban redevelopment market for 8 consecutive years. **Core Competencies** Hyundai Engineering & Construction possesses strong competitiveness based on over 70 years of accumulated advanced technology and extensive experience. It demonstrated its leadership in the global market by becoming the first Korean company to surpass $100 billion in overseas orders, and was recognized for its ESG management capabilities by achieving the world's No. 1 ranking in the construction sector of the Dow Jones Sustainability Index (DJSI). Furthermore, it is leading technological innovation by actively investing in future technology development, including smart home services, big data-based decision-making, construction automation, and smart cities. The company boasts high brand recognition and trust, ranking first in brand reputation among domestic construction companies as of March 2026, and first in real consumer interest as of November 2025. **Performance Analysis** Hyundai Engineering & Construction's revenue grew by 39.6% from KRW 21.2391 trillion in 2022 to KRW 29.6514 trillion in 2023, and further increased by 10.2% to KRW 32.6703 trillion in 2024. However, it decreased by 4.9% year-over-year to KRW 31.0629 trillion in 2025. Operating income increased by 36.6% year-over-year to KRW 785.4 billion in 2023 but turned to a loss of KRW -1.2634 trillion in 2024. In 2025, it successfully returned to profitability with KRW 653.0 billion, showing an improvement in profitability. Operating profit margin declined from 2.71% in 2022 and 2.65% in 2023 to -3.87% in 2024 but recovered to 2.10% in 2025. **Financial Soundness** Regarding Hyundai Engineering & Construction's financial soundness, its debt-to-equity ratio as of 2025 was 174.82%, a slight improvement from 179.29% in 2024, but still higher than 110.71% in 2022 and 126.81% in 2023. The current ratio increased to 147.94% in 2025 from 143.90% in 2024, but remains lower than 177.18% in 2022 and 179.72% in 2023. ROE (Return on Equity) recorded a loss of -7.92% in 2024 but returned to profitability at 5.53% in 2025, indicating a recovery in capital efficiency. **Outlook** Hyundai Engineering & Construction is expanding its business portfolio by focusing on securing future growth engines such as new energy businesses (nuclear power, renewable energy, hydrogen) and smart city infrastructure. Specifically, it plans to expand its presence in developed markets like Europe and North America and strengthen its dominance in data center and offshore wind power sectors. As of Q1 2026, the company has secured a stable order backlog of KRW 92.3237 trillion, and a gradual recovery in profit flow is expected going forward, driven by the completion of high-cost plant projects and improved profitability in the housing segment.