DL E&C announced its preliminary earnings on July 31st, forecasting sales of KRW 1.9914 trillion, operating profit of KRW 126.2 billion, and new orders worth KRW 962.6 billion for the second quarter of 2025 on a consolidated basis. Consolidated operating profit increased by 287.5% year-on-year. The operating profit margin also rose by 4.7 percentage points, demonstrating a full-scale improvement in performance. Operating profit also surpassed KRW100 billion for the first time since the fourth quarter of 2022, drawing attention. Despite the ongoing downtown in real estate and sluggish construction industry, DL E&C proactively achieved profitability improvement and realized earnings recovery based on its outstanding capabilities for crisis management.

 

Looking at the cost ratio indicator, which is directly linked to profitability improvement, the cost ratio, which has been improving since the second half of last year, continues to stabilize downward and realizes improved profitability. The cost ratio for the second quarter was 87.3% on a consolidated basis, meaning that the Company has achieved the cost ratio below 90% for the four consecutive quarters since the 3rd quarter of last year. This marks the lowest cost ratio in the past three years, following 87.2% in the second quarter of 2022, which was mainly due to efficient business management and risk management amidst declining profitability across the industry and uncertainty in business environment. In particular, the cost ratio in the housing business decreased by 5.8 percentage points to 87.2%, down from 93.0% in the same period of last year, contributing most to the company-wide profitability improvement.

 

DL&C, which is recognized to have the most stable financial structure in the industry, continued to demonstrate its financial stability through a number of financial indicators in the second quarter. As of the end of the second quarter, its consolidated debt-to-equity ratio was 96.0%, while its total borrowings to total assets were only 10.6%. With cash and cash equivalents of KRW 2.0496 trillion and net cash of KRW 1.0153 trillion, the company maintains one of the most stable financial positions among large construction companies. Its credit rating has been maintained at ‘AA- (stable)’, the highest in the construction industry, for seven consecutive years since 2019.

 

New orders in Q2 totaled KRW962.6 billion on a consolidated basis. DL E&C is consistently pursuing a strategy for wining selective orders focused on profitability. 

 

An official from DL E&C said, “Despite the economic downturn and heightened internal and external uncertainties, our efforts to overcome the challenging business environment have resulted in strong performance in the second quarter. Based on our rigorous risk management and robust financial structure, we will continue to secure high-quality new orders with guaranteed profitability, further accelerating our performance improvement in the second half of the year.”