Daewoo E&C Q1 profit surges 69% despite lower sales

Apr 28, 2026, 09:46 am

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The headquarters of Daewoo Engineering & Construction in Euljiro, Seoul.

Daewoo Engineering & Construction reported a sharp rise in first-quarter earnings, driven by improved profitability in its construction business despite a slight decline in revenue.

The company said on April 28 that its operating profit reached 255.6 billion won ($190 million), up 68.9% from a year earlier. Its operating margin rose significantly to 13.1% from 7.3% during the same period.

Net profit surged 237.6% year-on-year to 195.8 billion won, far exceeding market expectations.

Revenue fell 6.0% to 1.95 trillion won, roughly in line with market forecasts. By business segment, sales were led by the construction division at 1.27 trillion won, followed by civil engineering (350.6 billion won), plant (284 billion won), and other subsidiaries (43.6 billion won).

Both operating and net profits significantly outperformed consensus estimates, which had projected operating profit at 121.3 billion won and net profit at 69.3 billion won.

A company official attributed the earnings growth to improved profitability in the construction segment, noting that projects launched during a period of rising construction costs are now being completed sequentially.

“Despite growing external uncertainties such as geopolitical risks in the Middle East, we aim to achieve this year’s targets through rigorous risk management and a focus on high-value projects,” the official said.

New orders in the first quarter rose 21.2% year-on-year to 3.42 trillion won, largely driven by domestic projects such as redevelopment in Busan’s Sajik District 4 and Seoul’s Jangwi District 10.

The company’s order backlog stood at 51.89 trillion won at the end of the quarter, equivalent to about 6.4 years of annual revenue, providing stable long-term visibility.

Looking ahead, Daewoo E&C plans to increase its presence in future energy infrastructure sectors, including nuclear power and liquefied natural gas (LNG).

The company will also focus on securing large-scale international projects such as a nuclear power plant in the Czech Republic, the Gadeokdo New Airport development in South Korea, a naval base at Iraq’s Al-Faw port, and an LNG processing facility in Papua New Guinea, while diversifying into data centers and urban development projects.

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