Hyundai E&C Reports 31.6% Drop in Q3 Net Profit

Hyundai Engineering & Construction Co. (Hyundai E&C), a key player in South Korea's construction industry, reported a 31.6% decrease in its net profit for the third quarter of 2023. The company's net profit fell to 46.4 billion won (approximately $34.7 million), highlighting potential challenges within the sector.

Despite the drop in net profit, Hyundai E&C experienced a remarkable increase in operating profit, which more than doubled to 221.7 billion won, marking a 114.2% year-on-year rise. However, sales for the same period saw a decline of 20.3%, totaling 6.24 trillion won.

The company’s order backlog has shown resilience, reaching 28.87 trillion won, a 10.6% increase from the previous year. Hyundai E&C has achieved 86.5% of its annual order target, bolstered by significant contracts, including an electric arc furnace steel mill in the United States and an AI data center in Pohang.

Looking ahead, Hyundai E&C aims to diversify its business portfolio beyond traditional construction. The company plans to focus on large-scale nuclear power plants, small modular reactors, renewable energy projects, and data centers, with an emphasis on high-value-added initiatives to enhance profitability.