1. Hyundai E&C H1 2025: What Happened?
Hyundai E&C recorded consolidated revenue of KRW 15.17 trillion in H1 2025, a 53.6% decrease year-on-year. The downturn in the domestic building/housing market and the base effect of past large-scale orders were the main causes. However, through enhanced cost management and improved profitability in overseas plant projects, the company achieved an operating profit of KRW 430.7 billion and a net profit of KRW 325.3 billion, marking a return to profitability.
2. The Secret to Profitability: Why Energy?
Overseas revenue in the plant/new energy sector grew strongly, increasing by 66.8% year-on-year. Winning major overseas projects, such as the Bulgarian nuclear power plant and being selected as an EPC partner for Saudi Aramco, were key drivers of this improvement. The ‘energy-centric growth’ strategy is being successfully implemented, and active investments are being made in the hydrogen energy business, which has been added as a future growth engine.
3. Investment Strategy: What Should You Do?
Hyundai E&C is securing long-term growth potential through growth in its energy business and diversification of overseas markets. However, risk factors such as high debt-to-equity ratio, macroeconomic uncertainties, and potential litigation and dispute issues remain. Therefore, a conservative investment approach is necessary in the short term, and close monitoring of future overseas orders, new business performance, financial soundness management, and the progress of litigation and dispute issues is crucial.
4. Action Plan for Investors
- Short-term investors: Maintaining a neutral investment opinion and adopting a flexible strategy that responds to changing market conditions is necessary.
- Long-term investors: Focusing on the growth potential of the energy business and overseas market diversification while continuously monitoring risk factors is crucial.
Frequently Asked Questions
How was Hyundai E&C’s performance in the first half of 2025?
While revenue decreased, operating profit and net profit turned to black. The growth of the energy business was particularly notable.
What are the main investment risks for Hyundai E&C?
High debt-to-equity ratio, macroeconomic uncertainties, and potential litigation and dispute issues are the main risk factors.
What should investors consider when investing in Hyundai E&C?
A conservative approach is needed in the short term. Closely monitor overseas orders, new business performance, financial soundness, and litigation issues.