[비즈한국] Major South Korean construction companies experienced a year in which both revenue and operating profit faltered. Combined revenue for the top five construction companies by construction capacity dropped by approximately 12% compared to the previous year, with some firms seeing sharp declines in operating profit or shifting into a deficit. Nevertheless, they are actively pursuing order expansion to secure their future. Samsung C&T028260 Engineering & Construction Group, DL E&C375500, and Daewoo E&C047040 have significantly raised their 2026 new order targets, while Hyundai E&C000720 plans to maintain current levels and GS E&C006360 has proposed a conservative plan.
Top 5 Construction Firms See 10% Revenue Drop; Profitability Also Worsens for Samsung and Daewoo
According to each company on the 9th, the total combined revenue for the top 5 construction firms—Samsung C&T's Engineering & Construction Group, Hyundai E&C, Daewoo E&C, DL E&C, and GS E&C—was 73.1184 trillion KRW on a consolidated basis last year, a 12% decrease from the previous year. Revenue declined for all firms: Samsung C&T Construction Group at 14.148 trillion KRW (-24%), Hyundai E&C at 31.629 trillion KRW (-5%), Daewoo E&C at 8.546 trillion KRW (-23%), DL E&C at 7.4024 trillion KRW (-11%), and GS E&C at 12.4504 trillion KRW (-3%).
However, three companies improved their profitability. Hyundai E&C successfully turned a profit with an operating income of 653 billion KRW last year, while the operating profits of DL E&C and GS E&C expanded to 387 billion KRW (+43%) and 437.8 billion KRW (+53%), respectively. All three companies are credited with improving profitability by strengthening cost management and reducing their exposure to high-risk projects. Notably, Hyundai E&C had reported a 1.2634 trillion KRW loss in 2024 due to overseas plant project issues, but profitability recovered as those high-cost plant sites were completed.
Other construction firms saw their profitability worsen. Last year, Samsung C&T's construction group operating profit dropped to 536 billion KRW (-46%), while Daewoo E&C shifted from an operating profit of 403.1 billion KRW in 2024 to a deficit of 815.4 billion KRW last year. For Samsung C&T, revenue and operating profit decreased as large-scale projects, including high-tech facilities, reached their completion phase. Daewoo E&C suffered large losses due to unsold properties in provincial areas and rising overseas cost rates.
A Daewoo E&C official stated, "Losses were significant due to unsold provincial properties stemming from real estate market polarization and rising cost rates at some overseas sites. The impact of discounted sales of unsold units at the Sihwa MTV Prugio The Ocean, Daegu Dalseo Prugio Signature, and Goyang Hangdong Knowledge Industry Center, along with increased project volumes due to design changes at the Singapore urban railway site, accounted for a large portion of the losses."
Order Volumes Increased in 2025, Expected to Rise Further This Year
Most of the top 5 construction firms strengthened their performance foundations by increasing new orders last year. The total new order volume for the top 5 firms in 2025 was 96.2358 trillion KRW, an increase of approximately 10% from the previous year. The breakdown is as follows: Samsung C&T Construction Group 19.6021 trillion KRW (+9%), Hyundai E&C 33.4394 trillion KRW (+10%), Daewoo E&C 14.2355 trillion KRW (+44%), DL E&C 9.7515 trillion KRW (+3%), and GS E&C 19.2073 trillion KRW (-4%). With the exception of GS E&C, order volumes for all companies increased. However, excluding completed portions, actual order backlogs decreased slightly for Hyundai E&C (-1%) and DL E&C (-6%).
New order volumes are expected to increase this year compared to last year. The 2026 new order outlook is: Samsung C&T 23.5 trillion KRW (+20%), Hyundai E&C 33.4 trillion KRW (0%), Daewoo E&C 18 trillion KRW (+26%), DL E&C 12.5 trillion KRW (+28%), and GS E&C 17.8 trillion KRW (-7%). Every construction firm except GS E&C has set higher order targets than the previous year. Samsung C&T, which has the highest increase in target versus previous year's orders, is anticipating major contract wins in domestic AI computing centers, as well as nuclear power projects such as Small Modular Reactors (SMRs) and large-scale nuclear power plants in Romania.
A Samsung C&T official said, "While market volatility is expected to increase significantly in 2026 due to the global economic recession and deepening protectionism in each country, we also anticipate new business opportunities as the industrial paradigm shifts triggered by AI lead to increased orders for semiconductors and data centers, as well as soaring energy demand." They added, "We will enhance profitability by securing numerous private contracts or low-intensity, high-quality projects and establish a foundation for future growth by selecting high-value-added new business opportunities."