Daewoo Engineering & Construction Co.,Ltd (047040)

Daewoo E&C is a KOSPI-listed general construction company established in 1973, affiliated with Jungheung Group. The company's main business areas consist of housing and building construction, civil engineering, plant, and other segments. Key products and services include housing construction centered on the 'Prugio' apartment brand, the development of social overhead capital (SOC) such as roads, bridges, and ports, and high-value-added plant construction including LNG and nuclear power plants. Based on 2025 revenue, the building construction segment accounts for 68.39%, civil engineering for 17.43%, plant for 10.44%, and other consolidated subsidiaries for 3.74%. Daewoo E&C maintains a strong market position, ranking among the top companies in domestic construction capability assessments, notably securing 3rd place in civil engineering and building construction in the 2025 assessment. Furthermore, the company has gained high recognition in overseas markets, having executed over 300 projects in more than 40 countries across Africa, the Middle East, and Asia. Daewoo E&C possesses outstanding technological capabilities accumulated through experience in executing highly complex large-scale projects such as nuclear power plants, skyscrapers, immersed tunnels, and tidal power plants. Leveraging the strong brand power of 'Prugio' apartments, the company holds a competitive edge in the domestic housing market, achieving the top position in domestic housing supply for two consecutive years until 2025. Additionally, with high recognition in civil engineering and plant/power generation sectors both domestically and internationally, the company has secured a robust order backlog of KRW 51.8902 trillion as of Q1 2026, establishing a stable business foundation. Daewoo E&C's revenue increased by 11.79% year-over-year to KRW 11.6478 trillion in 2023, but then showed a downward trend, decreasing by 9.82% to KRW 10.5036 trillion in 2024, and significantly declining by 23.31% to KRW 8.0546 trillion in 2025. Operating income continuously decreased from KRW 760 billion in 2022 to KRW 403.1 billion in 2024, before turning to a deficit of KRW -815.4 billion in 2025. Net income also deteriorated significantly, turning to a deficit of KRW -916.1 billion in 2025 from KRW 242.8 billion in 2024. However, in Q1 2026, revenue decreased by 6.0% year-over-year to KRW 1.9514 trillion, but operating income increased by 68.9% year-over-year to KRW 255.6 billion, showing signs of profitability improvement. Daewoo E&C's financial soundness showed some deterioration in 2025. The debt-to-equity ratio significantly increased from 192.07% in 2024 to 284.46% in 2025. The current ratio slightly decreased from 211.02% in 2024 to 194.14% in 2025. ROE (Return on Equity) sharply declined, turning to a deficit of -26.36% in 2025 from 5.60% in 2024. Amid uncertainties in the domestic construction market, Daewoo E&C is pursuing a strategy to strengthen risk management and expand profitability-focused internal management. Specifically, the company plans to diversify its business portfolio by increasing the proportion of future energy infrastructure projects such as data centers, nuclear power plants, and LNG, and by focusing on securing orders for overseas urban development and urban regeneration projects. For 2026, the company aims for a performance rebound through securing large-scale projects such as the Czech nuclear power plant, Gadeokdo New Airport, and Iraq's Al Faw Grand Port naval base, setting targets of KRW 18 trillion in new orders and KRW 8 trillion in revenue.