1. Namkwang E&C’s Q2 Performance: What Changed?

Namkwang E&C recorded KRW 98.3 billion in revenue, KRW 2.6 billion in operating profit, and KRW 2.6 billion in net profit in Q2 2025, marking a return to profitability. Recovering from the sluggish performance in Q4 2024 and achieving two consecutive quarters of profit is highly encouraging. This can be interpreted as a result of increased operational efficiency and strengthened cost management.

2. The Secret to the Turnaround

The main drivers of this turnaround are a stable order backlog and efficient project management. Securing stable revenue through long-term contracts with numerous public institutions and large developers, along with the progress of ongoing projects, had a positive impact.

  • – Robust Business Portfolio: A diverse portfolio of projects, including roads, railways, and land development, contributed to stable revenue generation.
  • – Efficient Cost Control: Despite external factors like rising raw material prices, they secured profitability through effective cost management.

3. Future Outlook and Investment Strategies

Despite the positive earnings announcement, the still high debt-to-equity ratio requires caution when investing. However, if the current profit trend continues, improvement in the financial structure can be expected.

  • – Investment Considerations: Continuous monitoring of future interest rate fluctuations, raw material price volatility, and new order intake is essential.
  • – Investment Strategies: From a mid- to long-term perspective, ‘Buy’ or ‘Neutral’ ratings can be considered, and making investment decisions through additional information and market analysis is crucial.