DL E&C has significantly increased its operating profit and new orders in the second quarter of this year, driven by improved profitability in housing projects and expanded urban redevelopment contracts. The company is also pursuing a 55.5 billion won share buyback to enhance performance and shareholder return policies.
On July 30, DL E&C announced its preliminary results for the second quarter, reporting consolidated sales of 1.8 trillion won, operating profit of 159.4 billion won, and new orders totaling 3.1189 trillion won.
The operating profit rose 26% compared to the same period last year, thanks to stabilized cost rates in housing projects. Cumulative operating profit for the first half of the year increased by 53% year-on-year, while new orders surged approximately 224% during the same period.
The company attributed its performance improvement to a selective order strategy focused on profitability and risk management, along with effective cost control. Notably, the stabilization of cost rates in the housing sector and a focus on profitability contributed to the profit increase.
New orders saw a significant rise, reflecting contracts from urban redevelopment projects such as the Hanam 5 District and Mokdong 6 District. DL E&C plans to actively participate in key redevelopment projects in Seoul, including the Seongsu 2 District, in the second half of the year.
The company is also diversifying its business portfolio, focusing on energy and data centers. In June, DL E&C secured a 550 billion won contract for the Dongjeju Combined Power Plant and is expanding its contracts in domestic combined power and pumped storage power infrastructure. The company aims to strengthen its position in the next-generation energy market, leveraging its experience in North American plants and small modular reactor (SMR) design capabilities.
In the data center sector, DL E&C anticipates further order expansion. In the first half of the year, its subsidiary DL Construction secured a 126.8 billion won contract for an AI data center in Bucheon, and the company is pursuing large-scale data center projects in the Chungcheong and metropolitan areas in the second half.
DL E&C has also maintained financial stability, reporting a net cash position of approximately 1.2 trillion won and a debt ratio of 86.4% as of the end of the second quarter. Since its split in 2021, the company has consistently generated positive operating cash flow and recently received an 'AA-' (stable) credit rating for corporate bonds and an 'A1' rating for commercial paper from a domestic credit rating agency.
Additionally, DL E&C announced a share buyback trust agreement worth 55.5 billion won to enhance shareholder value. The contract period runs from July 31 to December 24.
This share buyback is part of the company's shareholder return policy for 2024-2026, representing 15% of its consolidated net profit of 370.2 billion won last year. The company continues to allocate 10% of its consolidated net profit for cash dividends and 15% for share buybacks.
A DL E&C official stated, "The results of our profitability-focused operations and thorough cost management are now being reflected in our performance, establishing a virtuous cycle of improved profits and cash generation. We will continue to enhance shareholder value alongside our performance improvements."
Meanwhile, in the '2026 Construction Company Capability Evaluation' released by the Ministry of Land, Infrastructure and Transport on July 30, DL E&C ranked sixth with a construction capability evaluation amount of 9.352 trillion won, dropping two spots from the previous year.
* This article has been translated by AI.
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