GS Construction Reports 210 Billion KRW Operating Profit in Q3... Profit Improvement Driven by New Business Growth

[Asia Economy Reporter Donghyun Choi] GS Engineering & Construction achieved an operating profit of 210 billion KRW in the third quarter of this year, surpassing market expectations, driven by growth in the new business sector and an increase in new orders.

On the 19th, GS Engineering & Construction announced its preliminary results for the third quarter through a fair disclosure, reporting sales of 2.32 trillion KRW, operating profit of 210 billion KRW, and new orders of 2.827 trillion KRW. While sales decreased by 5.0% compared to the same period last year, operating profit and new orders increased by 11.7% and 6.4%, respectively.

The solid operating profit was led by the construction and housing division, which boasts competitiveness with its apartment brand Xi, and the new business division. The gross profit margin was 23.5% in the construction and housing division and 18.8% in the new business division.

The new business division saw profit improvement as the performance of the globally acquired modular companies, Poland's Danwood and the UK's Elements Europe, was fully reflected this year. The third quarter sales of the new business division reached 189 billion KRW, and new orders amounted to 271 billion KRW. Cumulative sales for the third quarter totaled 423 billion KRW, and growth is expected to continue as the business is fully launched going forward.

Regarding new orders, there has been a steady increase with 2.269 trillion KRW in the first quarter, 2.417 trillion KRW in the second quarter, and 2.827 trillion KRW in the third quarter. Major orders in the third quarter include the Gwacheon 4 Complex Housing Reconstruction Maintenance Project Association (407 billion KRW), Namyangju Byeollae Residential-Commercial Complex (216 billion KRW), and Anyang Data Center (268 billion KRW) in the construction and housing division.

Meanwhile, cumulative results for the third quarter were sales of 7.309 trillion KRW, operating profit of 547 billion KRW, and new orders of 7.513 trillion KRW. Sales and operating profit decreased by 4.1% and 6.5%, respectively, compared to the same period last year. On the other hand, new orders increased by 13.3%, and operating profit margin and pre-tax profit margin recorded 7.5% and 6.1%, respectively.

A GS Engineering & Construction official stated, "Based on steady profit growth, we will further strengthen the competitiveness of the construction and housing division while actively discovering new businesses to secure future growth engines. We will solidify the foundation for sustainable management through selective orders based on profitability and continuous investment in competitively superior businesses."

This content was produced with the assistance of AI translation services.