Hyundai E&C (000720.KS) Q1 2026: Revenue Slumps 16%, Margin Holds at 2.9%
Operating margins held firm through a steep revenue contraction, but the 24% net profit rise was fueled by non-operating gains — not core construction earnings.
Source: Q1 2026 Quarterly Report (77th Fiscal Period, Jan 1–Mar 31, 2026) — Filed with DART | Consolidated Financial Statements | Unit: ₩ billions
Hyundai Engineering & Construction (000720.KS) posted ₩6.28 trillion in Q1 2026 revenue, a 15.8% decline from ₩7.46 trillion in the year-ago quarter, yet held its operating margin essentially flat at 2.88% — virtually unchanged from 2.87% a year earlier — demonstrating cost discipline and portfolio mix management in a volume-down environment. Net profit rose 24% to ₩206.8 billion, but the driver was not core construction: non-operating other income nearly doubled to ₩222.8 billion while operating profit itself fell 15.4%. Separately, a property, plant, and equipment revaluation of ₩357.2 billion was recognized in other comprehensive income — not in net profit — driving total comprehensive income to ₩709.2 billion, nearly quadrupling from ₩189.6 billion a year earlier, without flowing through reported earnings in the conventional sense. The ₩92.3 trillion order backlog — roughly three years of annualized revenue — provides the principal anchor for medium-term visibility, and separating recurring operational strength from accounting policy adjustments and non-recurring financial items is the defining analytical challenge this quarter presents.
