DL E&C Posts 26% Increase in Q2 Operating Profit...Improved Profitability with Lower Cost Ratios

Second Quarter Operating Profit Reaches 159.4 Billion Won
Revenue Down 9.5% Year-on-Year
Profitability Improves Thanks to Better Cost Ratios in Housing Division

DL E&C achieved a 26% year-on-year increase in operating profit for the second quarter, driven by the stabilization of cost ratios in its housing business and a selective order strategy focused on profitability, leading to a significant improvement in profitability.

On July 30, DL E&C announced that its consolidated operating profit for the second quarter reached 159.4 billion won, marking a 26.3% increase from the same period last year. The operating margin was 8.8%, up 2.5 percentage points. In contrast, revenues declined by 9.5% to 1.8029 trillion won, resulting in a modest reduction in overall business scale.

The company’s operational focus on profitability and stabilization of cost ratios in the housing business led to these results. For the second quarter, DL E&C’s consolidated sales in the housing division reached 714.5 billion won, an 8.4% increase year-on-year. Over the same period, the cost ratio for housing improved from 87.2% to 76.7%. In the civil engineering division, sales decreased 3.7% year-on-year to 182.7 billion won, but the cost ratio improved by 1.7% to 89.5%. On the other hand, in the plant division, sales fell by 23.9% year-on-year to 538.3 billion won, while the cost ratio increased by 2.6% to 88.9%, resulting in relatively weaker performance in this segment.

New orders rose sharply. In the most recent second quarter, DL E&C’s consolidated new orders amounted to 3.1189 trillion won, up a substantial 223.9% from last year’s 962.8 billion won. DL E&C plans to actively pursue major urban redevelopment projects in Seoul, including securing construction rights for Mokdong District 6 and targeting developments such as Seongsu District 2 in Seongdong-gu.

DL E&C aims to maintain stable cash generation through diversification of its order portfolio and a solid financial structure. The debt ratio for the second quarter stood at 86.4%. In terms of orders, the company is increasing its order backlog based on its competitiveness in the energy and data center sectors. Last month, it won the 550.0 billion won Dongjeju combined power plant project, and in the second half of this year, DL E&C plans to compete for large-scale data center projects scheduled for the Chungcheong region and the greater Seoul area.

Meanwhile, DL E&C signed a trust contract for the acquisition of treasury shares worth 55.5 billion won to enhance shareholder value. This amount corresponds to 15% of last year’s consolidated net income.

A representative from DL E&C stated, "As our business operations focused on profitability and thorough cost control are now fully reflected in our performance, a virtuous cycle of improved earnings and strengthened cash generation is firmly in place. In addition to performance improvement, we will continue to actively engage in activities to enhance shareholder value," he said.

This content was produced with the assistance of AI translation services.