DL E&C posts 26% jump in Q2 operating profit

DL E&C said its consolidated operating profit for the second quarter came in at 159.4 billion won ($110 million), up 26.3 percent from the same period a year earlier, according to preliminary results.

An electronic disclosure filed with the Financial Supervisory Service on Thursday showed DL E&C posted second-quarter consolidated sales of 1.8 trillion won, operating profit of 159.4 billion won and new orders of 3.12 trillion won. On a first-half basis, operating profit rose 53 percent year-on-year, while new orders surged 224 percent over the same period last year.

"Stabilization of cost rates in the housing segment and profit-focused project management drove the results," a company official said. "Selective order-taking centered on project viability and rigorous cost control are sustaining the profitability improvement trend."

New orders showed a recovery, led by the housing segment. The company secured urban redevelopment contracts including the Hannam Zone 5 project and won construction rights for the Mokdong Complex 6 apartment reconstruction project, demonstrating its competitiveness in large-scale redevelopment work in southwestern Seoul.

DL E&C is pursuing portfolio diversification by leveraging its capabilities in the power generation, energy and data center sectors, where demand is growing. In the first half, subsidiary DL Construction secured a 126.8 billion won AI data center project in Bucheon, and DL E&C is targeting large-scale data center contracts in the Chungcheong region and the greater Seoul area in the second half of this year.

As of the end of the second quarter, net cash stood at around 1.2 trillion won and the debt-to-equity ratio was 86.4 percent.

DL E&C also announced a share buyback and cancellation plan to enhance shareholder value, saying it had entered into a trust agreement to acquire 55.5 billion won worth of treasury shares. The move is part of the company's three-year shareholder return policy for 2024–2026 and represents 15 percent of its 2025 consolidated net profit for the period of 370.2 billion won. The trust agreement runs from Friday through Dec. 24. DL E&C has been acquiring treasury shares under its shareholder return policy since 2022.

"A virtuous cycle in which both profit and cash generation improve together is firmly taking hold, as the results of profit-focused project management and rigorous cost control are now fully reflected in our earnings," a company official said. "We will continue to actively pursue shareholder value enhancement alongside our improving performance."

DL E&C shares closed at 54,100 won on Thursday, up 3.24 percent from the previous session, according to Naver Pay Securities.