1. Daewoo E&C Q2 Earnings: Key Highlights

Daewoo E&C reported revenue of KRW 22.733 billion (slightly up YoY), operating profit of KRW 82.1 billion (sharply down YoY), and a net loss of KRW 42.9 billion in Q2 2025. The net loss, in particular, came as a surprise to the market.

2. Analyzing the Decline: What Went Wrong?

  • – Increased Cost Burden: Rising raw material prices, oil prices, and global supply chain instability significantly increased construction costs.
  • – Sluggish Housing Market: The downturn in the domestic real estate market negatively impacted the performance of the housing construction segment, particularly the poor initial sales rate of the Dunsan District C1 Block Officetel project in Daejeon.
  • – Uncertainty in Overseas Projects: Delays and uncertainties surrounding overseas projects, such as the Libya Fast Track Power Plant Project, continue to persist.
  • – Increased Financial Expenses: Rising interest rates led to increased interest expenses, impacting profitability.

3. Future Outlook and Investment Strategies: What’s Next?

The short-term outlook for Daewoo E&C’s stock price remains uncertain. However, from a mid-to-long-term perspective, investors should consider the following factors:

  • – Recovery of the Housing Market: The recovery of the domestic real estate market will significantly influence future performance.
  • – Performance of Overseas Projects: Resolving uncertainties and securing profitability in overseas projects is crucial.
  • – Cost Control and Expense Reduction Efforts: Efficient cost management and expense reduction efforts are essential for improving profitability.

Investors should consider a diversified investment strategy for risk management and continuously monitor market conditions and the company’s response strategies.