GS Engineering & Construction Q3 Operating Profit Falls 35.7% to KRW 95.5 Billion Amid Housing Slump

Revenue falls 14.5% year over year to KRW 2.7442 trillion
Third-quarter new orders total KRW 395.84 billion
Aims to rebound through Seoul urban renewal projects

GS Engineering & Construction disclosed on Oct. 30 that its consolidated operating profit for the third quarter of this year was provisionally tallied at KRW 95.5 billion, down 35.7% from the same period a year earlier. Revenue fell 14.5% year over year to KRW 2.7442 trillion.

View of GS E&C's headquarters in Jongno-gu, Seoul. GS E&C.

Revenue by business division was KRW 1.4997 trillion for the Architecture and Housing Division, KRW 343.7 billion for the Infrastructure Division, and KRW 457 billion for the Plant Division.

Revenue at the Plant Division rose 34.6% year over year as major domestic and overseas projects moved into full swing. Meanwhile, revenue at the Architecture and Housing Division fell 18.7% from a year earlier as the effects of the real estate market downturn led to a decline in housing supply through last year.

New orders in the third quarter totaled KRW 395.84 billion. The Architecture and Housing Division secured orders for projects including the Yongsan Munbae-dong mixed-use development (KRW 571.7 billion) and the Namyangju Wangsuk 2 A8 and 12BL private participation project (KRW 217.3 billion). The Infrastructure Division secured orders for the Second Gyeongchun National Highway road construction project (Namyangju-Chuncheon, Section 3) (KRW 104.2 billion), while Danwood, GS Engineering & Construction's Polish subsidiary specializing in modular construction, recorded new orders worth KRW 196.2 billion, among others.

In addition, GS Engineering & Construction secured construction contracts for urban renewal projects worth approximately KRW 5.5 trillion through the third quarter, including the Seongsu District 1 redevelopment project (KRW 2.154 trillion), the Songpa Hanyang 2nd reconstruction project (KRW 685.6 billion), and the Seocho Jinhung reconstruction project (KRW 679.3 billion). More recently, the company was selected as the preferred bidder for major urban renewal projects in key areas of Seoul, including the reconstruction of Mokdong Complex 12 (KRW 1.7887 trillion) and the reconstruction of the Yeouido Eunha and Samik apartment complexes, valued at more than KRW 1 trillion. It is expected to secure construction contracts for multiple large-scale urban renewal projects.

A GS Engineering & Construction official said, "With uncertainty continuing in domestic and international markets, we will respond flexibly to market conditions based on a strategic business portfolio focused on areas where we have a competitive edge, and do our utmost to solidify the foundation for future growth."

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