DL E&C's profitability for the first quarter of this year improved sharply. The cost ratio in the dwellings and building institutional sector fell significantly, helping to improve results.
DL E&C said on the 30th that, on a consolidation basis, first-quarter operating profit rose 94.34% year over year to 157.4 billion won. The operating margin was 9.1%, a sharp improvement from 4.5% in the first quarter of last year.
During the same period, revenue was 1.7252 trillion won, down 4.59%, while net profit came to 160.1 billion won, up 429.46%.
DL E&C's first-quarter profitability was driven by a clear improvement in the cost ratio in the dwellings and building institutional sector. DL E&C pursued a selective order-taking strategy that considered profitability and risk. As a result, the first-quarter cost ratio across all business units was 85.5%, down 2.5 percentage points (p) from 88.0% for the full year.
In particular, the cost ratio in the dwellings institutional sector was 79.9%, an improvement of 5.8 percentage points from last year's full-year cost ratio of 85.7%. The civil engineering and plant cost ratios both recorded 90.2%. Compared with last year's full-year cost ratio, civil engineering fell 3.5 percentage points, while plant rose 1.5 percentage points.
The improving trend continued across profit indicators as well. Gross profit was 263.6 billion won, up 36.5% from 193.1 billion won a year earlier, and net profit rose 429.5% to 160.1 billion won from 30.2 billion won a year earlier.
A company official said, "It is analyzed that improvements in the cost ratio, advancement of the business portfolio, and strengthened risk management affected the overall profit expansion."
New orders for DL E&C also increased 39.3% year over year to 2.1265 trillion won. DL E&C is securing both scale and profitability in balance by focusing on competitive businesses. Order wins continued to center on urban regeneration projects such as Seongnam Sinheung District 1 (364.8 billion won) and Daejeon Doma District 13 (326.5 billion won), and major infrastructure projects such as Nambu Inland Section 5-1 (131 billion won) and Jungbong Tunnel (187.9 billion won). The company is currently concentrating its bidding capabilities on key core project sites in Seoul, including Apgujeong District 5, Mok-dong Complex 6, Seongsu District 2, and Yeouido.
Meaningful results are also continuing in the plant institutional sector. DL E&C signed a "SMR standardization design" contract with its global SMR business partner, X-energy, ramping up entry into the fourth-generation SMR market. In addition, having been selected as the preferred bidder for the 500 billion won Jeju clean LNG combined-cycle power plant construction project, the recovery in the plant institutional sector is expected to become even more evident upon final contract signing.
DL E&C continues to maintain industry-leading financial stability and profitability. Cash and cash equivalents expanded to 2.2453 trillion won from 2.0532 trillion won at the end of last year. Borrowing fund stood at about 965.1 billion won, similar to the end of last year. Net cash was 1.2802 trillion won, up 190.6 billion won from 1.0896 trillion won at the end of last year. The liability ratio was 87.5%, still maintaining industry-leading financial stability.
A DL E&C official said, "These results reflect visible outcomes from a profitability-centered structural overhaul," adding, "Based on selective order-taking and thorough risk management, we will continue to generate stable profits and cash flow and solidify industry-leading profitability and financial competitiveness."