Kumho Engineering & Construction Posts 15.4 Billion Won Operating Profit in Q3... Four Consecutive Quarters of Profitability

Kumho Engineering & Construction continued its streak of profitability for the fourth consecutive quarter, posting an operating profit surplus in the third quarter as well.

According to Kumho Engineering & Construction's consolidated provisional results announced on November 11, sales for this quarter reached 523.4 billion won, marking a 35.2% increase compared to the same period last year. Operating profit and net profit turned positive, recording 15.4 billion won and 7.7 billion won, respectively.

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On a cumulative basis for the first to third quarters of this year, the company achieved sales of 1.5226 trillion won, operating profit of 37.3 billion won, and net profit of 18.9 billion won, showing significant improvement in both sales and profits compared to the same period last year. Since proactively reflecting losses from increased construction costs in the third quarter of last year, Kumho Engineering & Construction has maintained stable profitability for four consecutive quarters.

The company is also continuing its efforts to improve its financial structure through asset sales. In October, Kumho Engineering & Construction secured approximately 42 billion won in liquidity by selling shares in a real estate investment trust (REIT). Reflecting the REIT sale, the debt ratio is expected to decrease to the 400% range, and with continued strong performance, the company expects the debt ratio to decline further in the future.

Kumho Engineering & Construction forecasts that next year, revenue recognition from major projects will be fully realized and performance improvements will continue through new orders. In particular, the company expects opportunities for public sector orders to expand in line with the government's policy to increase housing supply. Previously, in July, Kumho Engineering & Construction was selected as the preferred negotiation partner for three public housing projects in the third new towns, including Namyangju Wangsuk District and Hanam Gyosan District. The total scale of these three projects is 1.6 trillion won.

The company plans to maintain stable growth next year through a balanced mix of public and private sector housing orders. A Kumho Engineering & Construction representative stated, "With both a sustained profit trend and improved financial structure, we expect this year's results to finish better than anticipated," adding, "Next year, we will accelerate profit-based growth to further strengthen market trust."

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