Gs Engineering & Construction Corp (006360)

**Business Overview** GS E&C is a company that provides comprehensive construction services across various sectors, including building & housing, plant, infrastructure, and new growth businesses. In the housing division, the company supplies premium residential products through its 'Xi' brand, holding a leading position in the domestic urban redevelopment market. The Building & Housing Business Division accounts for the largest share of revenue, representing over approximately 60%. As of Q1 2026, the Building & Housing Business Division recorded revenue of KRW 1,421.3 billion. In addition, the Infrastructure Business Division (KRW 326.4 billion) and the Plant Business Division (KRW 253.6 billion) contribute as key revenue sources. Key clients include domestic and international clients and general consumers. Particularly in the domestic housing market, GS E&C has secured a strong market position in urban redevelopment projects such as reconstruction and re-development, based on the high brand recognition of 'Xi'. Furthermore, the company is actively pursuing new growth businesses such as data centers, Small Modular Reactors (SMRs), renewable energy, and modular housing, thereby diversifying its business portfolio. **Core Competencies** Based on its strong 'Xi' housing brand, GS E&C possesses high competitiveness in the domestic housing market, especially in the urban redevelopment sector. Furthermore, based on its accumulated technological expertise in the plant and infrastructure sectors and its capabilities in executing overseas projects, it is recognized in the global market. Its well-structured business portfolio is evaluated as having excellent crisis response capabilities. Recognized for its efforts in win-win cooperation with partners, having achieved the highest rating for four consecutive years in the Ministry of Land, Infrastructure and Transport's mutual cooperation evaluation among construction companies, it also demonstrates strengths in establishing a stable business environment. **Performance Analysis** GS E&C's revenue increased by 9.25% from KRW 12,299.2 billion in 2022 to KRW 13,436.7 billion in 2023. However, it decreased by 4.26% to KRW 12,863.8 billion in 2024 and by 3.22% to KRW 12,450.3 billion in 2025, showing a decline over the past two years. In terms of profitability, the company performed poorly in 2023, recording an operating loss of KRW 387.9 billion and a net loss of KRW 419.5 billion. However, it turned to profit in 2024 with an operating income of KRW 286.0 billion and a net income of KRW 263.9 billion. In 2025, operating income increased by 53.08% to KRW 437.8 billion, but net income significantly decreased by 64.61% to KRW 93.4 billion, indicating improved operating income but a substantial decline in net income. Looking at recent quarterly performance, Q1 2026 revenue was KRW 2,400.5 billion, a 21.6% decrease year-over-year. However, operating income increased by 4.4% to KRW 73.5 billion, reflecting efforts to defend profitability through internal management. **Financial Soundness** GS E&C's financial soundness was somewhat unstable in 2023 with a debt-to-equity ratio of 262.47% and a current ratio of 107.80%. In 2024, the debt-to-equity ratio slightly improved to 249.97%, but the current ratio declined to 95.95%. In 2025, the debt-to-equity ratio continued to improve to 234.20%, and the current ratio also showed signs of recovery, reaching 115.86%. ROE was low at -8.59% in 2023 but turned positive to 5.19% in 2024 and recorded 1.69% in 2025. **Outlook** Despite uncertainties in the domestic housing market, GS E&C is maintaining stable revenue by focusing on securing urban redevelopment projects based on its 'Xi' brand. Furthermore, it is securing future growth engines by expanding into high-value-added new businesses such as data centers, SMRs, and renewable energy, as well as overseas infrastructure and plant projects. The company also plans to strengthen its competitiveness by adopting smart construction utilizing AI technology.