Hyundai Engineering & Construction is a top-tier general contractor in Korea whose work spans buildings (apartments and redevelopment), civil engineering (roads and plants), and power generation (nuclear and electricity). It wins projects from clients and recognizes revenue and profit as the work progresses, and 2025 consolidated revenue was around ₩31 trillion. After posting large losses in 2024 from cost re-estimates at some sites, it returned to profit in 2025, and in the first quarter of 2026 net profit rose 24% even as revenue fell. In June, large orders such as the Apgujeong redevelopment (about ₩1.0472 trillion) and the Wirye mixed-use development (₩3.04 trillion, equal to 9.8% of 2025 revenue) thickened its revenue base. What stands out recently is that earnings normalization is progressing smoothly and large orders support future revenue; on the other hand, construction earnings are sensitive to materials and labor costs and to the property and project-financing cycle, so a renewed jump in costs or the roughly ₩17 trillion balance of completion-guarantee obligations on project financing could weigh on the company.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 336.3%).
- Revenue fell 4.9% year over year (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 15.8% lower than a year earlier.
- ROE is 4.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.1%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Motor 20.95% (individual)
Controlling bloc incl. related parties 34.92%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis
- Hyundai E&C is a top-tier Korean general contractor whose work spans buildings such as apartments, redevelopment, and offices; civil engineering such as roads, ports, and plants; and power generation such as nuclear and electricity.
- How it makes money is straightforward: it wins projects from clients (redevelopment associations, public agencies, overseas governments and companies, and others) and recognizes revenue and profit in proportion to how far the work has progressed.
- Consolidated revenue in 2025 was around ₩31 trillion, with domestic housing and building, overseas plants and infrastructure, and energy businesses such as nuclear forming the large pillars of revenue.
- The quality of earnings hinges heavily on whether a project can be finished at the cost assumed when it was won; if materials and labor costs surge, costs at already-contracted sites can exceed expectations and produce losses.
- In fact, in 2024 the company posted large losses from cost re-estimates at some overseas and domestic sites, and after clearing those it has been on a path of earnings returning to a normal track from 2025.
- The recent closing price is ₩98,900 and the market cap is ₩11.0 trillion.
- The price sits below its 20-day line (₩121,440) and below its 60-day line (₩144,148).
- Being under both the short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 34.1, a neutral level.
- The one-month change is -24.1%, the three-month change is -36.6%, and the position versus the 52-week high is -47.6%.
- Relative strength against the KOSPI is 72 (1-99, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 27% of all stocks by strength.
- Over the past three months it lagged the index by 57.8%.
- When reading the chart, it helps to look at trading volume and disclosure dates together.
- Starting with the valuation metrics, the P/E ratio (how many times one year's net profit the price represents) of 29.51x looks expensive at a glance, but it is based on 2025 net profit (₩373.1 billion) that had not yet normalized right after the 2024 losses, so it is inflated relative to reality.
- The P/B (how many times per-share net assets the price represents) is 1.33x and the P/S (how many times revenue the price represents) is 0.39x, which is low relative to revenue.
- Profitability is in the early stage of recovery: an ROE (how much is earned in a year on equity) of 4.5% and an operating margin of 2.1% are still below the construction-industry average, but that is because 2025 was the year the company had just emerged from losses.
- The debt ratio (debt relative to equity) of 336% looks high, but a large part of a builder's debt is not bank borrowing; it has the character of advances and construction payments received in advance from clients, so it is hard to judge by the same yardstick as a manufacturer's pure financial debt.
- That said, the balance of completion-guarantee obligations tied to project financing (PF) reaching the ₩17 trillion range should be viewed together as a structural burden sensitive to the property cycle.
- Over five years revenue grew from ₩18.1 trillion in 2021 to ₩31.1 trillion in 2025, about 14.5% a year on average, so the top line expanded steadily.
- Earnings, by contrast, were volatile.
- Net profit of ₩535.9 billion in 2023 turned to a loss of ₩168.7 billion in 2024 (large losses from cost re-estimates at overseas and domestic sites) before returning to a profit of ₩373.1 billion in 2025.
- In short, revenue trends up and to the right while earnings bottomed in 2024 and are recovering.
- In the first quarter of 2026 revenue was ₩6.28 trillion (-15.8% year on year) and operating profit was ₩180.9 billion (-15.4%), so the top line shrank, yet net profit actually rose 24% to ₩206.8 billion.
- Net profit rising even as revenue fell reads as a signal that low-margin sites are wrapping up and higher-margin orders are starting to flow through to results.
- The company set an official 2026 target of ₩27.4 trillion in consolidated revenue and ₩800 billion in operating profit, about 22% above 2025 operating profit (₩653 billion), on the premise that the profitability recovery continues.
- It already filled about 23% of the annual revenue target in the first quarter, and large first-half orders such as the Wirye Bokjeong Station district (₩3.04 trillion) and the Apgujeong redevelopment added a thick order backlog, supporting this recovery scenario.
- Because this is a stock passing an earnings inflection point, viewing it on this year's earnings is closer to reality than a P/E calculated on last year's results.
- First-half disclosures show a clear narrative running from large orders into the funding and guarantees that accompany them.
- On June 1 the company was selected as the contractor for the Apgujeong Apartment District Special Planning Zone 5 redevelopment, securing its share of about ₩1.0472 trillion, and on June 8 it disclosed a ₩3.04 trillion contract for the Wirye New Town Bokjeong Station district mixed-use development (new construction of mixed-use lots 2 and 3 BL), a large deal equal to 9.8% of 2025 revenue.
- Linked to this Wirye project, on June 5 it decided on a completion-related debt guarantee (₩964.1 billion) for the developer (Songpa Biz Cluster PFV), and on June 9 it decided to issue ₩500 billion of privately placed convertible bonds for operating funds (0% coupon and yield to maturity, conversion price ₩150,607).
- It is a phase in which the company secures growth momentum through orders while the guarantee and funding burdens that come with large development projects rise alongside.
- The point to watch is that earnings normalization is progressing smoothly.
- Having shed the 2024 losses and returned to profit in 2025, first-quarter 2026 net profit rose 24% even as revenue fell, and the company presented a recovery target of ₩800 billion in operating profit.
- On top of that, large orders such as Wirye and Apgujeong thickened the future revenue base.
- The trailing P/E of 34x looks high only because of the 2025 figure, when earnings had not yet fully recovered; on this year's earnings the burden drops sharply.
- The cautions, conversely, are clear.
- Construction earnings are sensitive to materials and labor costs and to the property and PF cycle, so if costs jump again or unsold inventory and PF distress spread, cost losses like those in 2024 could recur.
- The ₩17 trillion range balance of PF completion guarantees is also a variable that could weigh on the company if the property cycle worsens.
- In short, the structure is strong in a phase of stable costs and orders contributing to profit, and vulnerable in a phase where cost, property, and PF risks resurface.
🔎 Valuation vs peers Fairly valued
The peer group is drawn from large domestic general contractors and EPC companies that, like Hyundai E&C, engage in housing, civil engineering, plants, and overseas work together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung E&A | 13.81x | 1.80x | 13.03% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| GS E&C | 26.77x | 0.52x | 1.95% |
| Daewoo E&C | — | 1.94x | -27.25% |
The peers are at differing stages of earnings recovery, so a simple trailing P/E comparison is misleading. Hyundai E&C's P/E of 34x is overstated because it is based on 2025 earnings that had not yet normalized right after the 2024 losses. If this year's earnings normalize as targeted, the earnings-multiple burden drops sharply. The P/B of 1.5x is higher than GS E&C or DL E&C (0.4-0.5x), but that can be seen as a premium reflecting brand, order pipeline, and expectations for an earnings recovery. That premium is constrained by the PF guarantee burden and sensitivity to the property cycle, however, so the overall judgment at this point is 'fairly valued.'
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | 27 ₩400.0 billion | ₩800.0 billion | approx. ₩720.0 billion |
| Next quarter | Q2 2026 | approx. 6 ₩700.0 billion | approx. ₩200.0 billion | approx. ₩230.0 billion |
Price history Close · MA20 · MA60
The latest close is ₩98,900 and the market capitalization is ₩11.0 trillion. The price sits below its 20-day moving average (₩121,440) and below its 60-day moving average (₩144,148). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.1, a neutral level. The one-month change is -24.1%, the three-month change is -36.6%, and the position relative to the 52-week high is -47.6%. Relative strength versus the KOSPI is 72 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 73% of all stocks. Over the past three months it lagged the index by 57.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -57.79% / 6M -19.45% / 12M -42.65%
Key metrics vs sector median
Valuation
The P/E of 29.51x is above the sector median (8.02x). The P/B of 1.33x is above the sector median (0.50x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.5%, below the sector average (7.0%). The operating margin is 2.1%. The debt ratio is 336.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $19.7B | $21.7B | $20.6B | -4.92% ↓ slower |
| Operating profit | $520.6M | -$837.4M | $432.8M | — |
| Net profit | $355.2M | -$111.8M | $247.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $12.0B | $14.1B | $19.7B | $21.7B | $20.6B |
| Operating profit | $499.4M | $381.0M | $520.6M | -$837.4M | $432.8M |
| Net profit | $270.1M | $271.0M | $355.2M | -$111.8M | $247.3M |
| Revenue CAGR | 4-yr avg 14.51% | ||||
Revenue fell 4.9% year over year (2023 ₩29.7 trillion → 2024 ₩32.7 trillion → 2025 ₩31.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.5%. The two-year revenue CAGR is 2.4%. In the most recent quarter (Q1 2026), revenue was 15.8% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 4.9% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-08UpdateWirye New Town Bokjeong Station district mixed-use development (new construction of mixed-use lots 2 BL and 3 BL) contract of ₩3.0394 trillion. Equal to 9.8% of 2025 revenue, with groundbreaking from 2026-06-15 to completion on 2031-01-14; the client is the largest shareholder, Songpa Biz Cluster PFV.Expands the medium-term revenue base. As a large development project it will flow into revenue and profit sequentially over the next five years, though it also carries funding and guarantee burdens tied to the developer. Source
- 2026-06-01UpdateSelected as contractor for the Apgujeong Apartment District Special Planning Zone 5 redevelopment, with the company's share of about ₩1.0472 trillion (70% stake, VAT excluded). Equal to 3.4% of 2025 revenue.Expands the short-term order backlog and secures a highly symbolic core Seoul redevelopment. Positive for expectations of a recovery in the housing segment. Source
- 2026-06-09FilingDecision to issue the 312th series of unsecured, privately placed convertible bonds worth ₩500 billion for operating funds. 0.0% coupon and yield to maturity, conversion price ₩150,607 (about 32% above the current price), roughly 2.90% of shares outstanding if converted, with conversion requests opening 2027-07-07.Secures low-cost funds to cover operating funds for large development projects. Because the conversion price is above the current price, immediate dilution concern is limited, but it is a potential dilution factor if the share price rises later. Source
- 2026-06-05UpdateDecided on a debt-assumption guarantee of ₩964.1 billion for the Wirye Bokjeong Station developer (Songpa Biz Cluster PFV) in the event of non-completion (9.5% of shareholders' equity). Total balance of PF completion-guarantee debt obligations in the ₩17.4 trillion range.A structural guarantee burden that comes with pursuing large development projects. A potential risk factor to monitor together if the property and PF cycle deteriorates. Source
- 2026-04-28IRHeld the Q1 2026 earnings conference call. Disclosed revenue of ₩6.28 trillion, operating profit of ₩180.9 billion, and net profit of ₩206.8 billion (net profit +24% year on year), and presented annual targets (revenue ₩27.4 trillion, operating profit ₩800 billion, new orders ₩33.4 trillion).Confirms a profitability recovery through higher net profit despite lower revenue. Presenting annual targets makes the normalization track visible. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Wirye Bokjeong Station district contract amount | base ·approx. | ₩3,039,406,100,000 | Confirmed | link |
| Q1 2026 net profit YoY | +24% (base quarter net_income_yoy) | net profit ₩206.8 billion | Confirmed | link |
| 2026 revenue and operating profit targets | seasonal revenue 26.7·operating profit 6,600 | revenue 27.4·operating profit 8,000 | Unverified | link |
| Convertible bond issue size and conversion price | base | ₩500.0 billion, ₩150,607, approx. 2.90% | Confirmed | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09Material-fact report
- 2026-06-08Single supply/sales contract
- 2026-06-05Disclosure
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-02Disclosure
- 2026-06-01Corporate governance report
- 2026-06-01Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Disclosure
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.