Dong-A Geological Engineering Expands Underground and Offshore Infrastructure Business... Sales and Profits Rise Together in Q1

Dong-A Geological Engineering, a company specializing in underground and offshore infrastructure construction, recorded solid growth in the first quarter of this year, driven by the expansion of overseas projects and the growth of its ground improvement business.

On May 19, Dong-A Geological Engineering announced its consolidated results for the first quarter: sales of 123.8 billion won and operating profit of 5.1 billion won. Sales increased by 19.2% compared to the same period last year, and operating profit rose by 43.6%. Net profit for the same period also grew by 47.9% to 4.2 billion won.

The company explained that progress in overseas projects and expansion of sales in the ground improvement (DCM) division drove the improved performance.

In particular, overseas sales increased by 22.6% year-on-year. The company analyzed that the Singapore tunnel boring machine (TBM) project, which has entered the full-scale excavation phase, contributed to this growth.

The ground improvement (DCM) division also supported overall results, achieving 118.7% growth thanks to increased sales at both domestic and overseas sites.

Dong-A Geological Engineering is a specialized company that carries out a wide range of underground and subterranean infrastructure construction projects, including tunnels, power transmission tunnels, ports, and offshore ground improvement, based on shield TBM (Tunnel Boring Machine) and DCM (Deep Cement Mixing) methods.

Based on experience with major projects at home and abroad, the company has secured competitiveness in the TBM and offshore ground improvement sectors. Recently, it has been expanding its business domains in line with the growing trend of large-scale power infrastructure and urban undergrounding projects.

The company explained that by diversifying its business across various types of construction and simultaneously executing domestic and overseas projects, it can distribute the impact of specific market changes and maintain stable performance.

Recently, the global infrastructure market has witnessed the simultaneous spread of artificial intelligence (AI) and a strengthening of energy security. As a result, investment in power grids, power generation facilities, and underground infrastructure is increasing. The rise in electricity demand due to the proliferation of data centers and moves by countries to establish stable energy supply chains are converging, making the speed of related infrastructure construction a key competitive factor.

Accordingly, the construction industry is becoming increasingly important, moving beyond simple construction to take on a role in actually implementing energy and power infrastructure.

In response to these market changes, Dong-A Geological Engineering is seeking to expand new orders, focusing on power infrastructure and ground improvement sectors.

In fact, in the first quarter of this year, the company won new orders for projects including the power transmission tunnel construction in the Yongin-Hwaseong area and the construction of the second dredged soil disposal site at Gunsan Port, thereby expanding business opportunities in the power infrastructure and offshore ground improvement sectors.

Going forward, the company plans to strengthen orders for TBM projects centered on power transmission tunnels in Korea to meet the growing demand for power infrastructure expansion and undergrounding. Overseas, it will focus on expanding ground improvement businesses such as DCM and D/Wall, with Singapore as a hub.

Co-CEOs Choi Jungwook and Chung Kyungsoo of Dong-A Geological Engineering stated, "With major overseas projects now in full swing and increased sales in the ground improvement division, we have achieved performance growth. In line with the rising demand for power infrastructure driven by the spread of AI and data centers, we will actively secure related business opportunities and work to win large-scale project orders."

Industry analysts noted that these results demonstrate Dong-A Geological Engineering’s continued growth, leveraging TBM and DCM-based construction competitiveness amid the global trend of increased power infrastructure investment and growing demand for urban undergrounding.

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