Daewoo Engineering & Construction Set to Report Third-Quarter Results as Profit Expected to Rise

Key Facts

Daewoo Engineering & Construction said it will release its third-quarter 2026 results on October 27, according to Investing.com’s earnings calendar. Ahead of the announcement, Yuanta estimated consolidated revenue at 1.9679 trillion won, down 1.1% year on year. It forecast operating profit of 175.5 billion won, up 210.3%. The estimates were close to the market consensus of 1.9906 trillion won in revenue and 178.3 billion won in operating profit. Investors were awaiting the results amid expectations of improved profitability, while revenue growth remained in focus.

The estimates point to a divergence between revenue and profitability in the third quarter. Yuanta projected revenue would decline from the same period a year earlier as operating profit rose sharply. Its forecast operating profit was below the market consensus of 178.3 billion won, while projected revenue was also below the average of 1.9906 trillion won. These figures are forecasts made ahead of the release, not reported results. The latest quarterly results cited in an earlier report on the second quarter showed that a decline in active sites weighed on sales, while stable cost ratios and improved profitability in the building division helped lift operating profit.

Yuanta said profitability across the business segments is expected to remain strong in the fourth quarter. The report quoted analyst Kim Do-yup as saying, "We expect profitability to remain robust across all business segments in the fourth quarter, following the third quarter." He added that results from major projects in the pipeline could prompt higher earnings estimates. That outlook puts emphasis on the pace at which potential projects are converted into contracts and executed, after the company raised its new-order estimate for the year. But it remains dependent on project progress and costs, rather than their inclusion in award plans alone.

Yuanta identified five major projects in Daewoo's fourth-quarter pipeline, including nuclear work in the Czech Republic and liquefied natural gas projects in Papua New Guinea, Nigeria and Mozambique. Mirae Asset said Daewoo raised its 2026 new-order target to 27 trillion won from 18 trillion, citing greater clarity on its chances of winning five potential projects. The report said the higher target represents an increase of 50% from the original estimate. The outlook links the overseas project pipeline to the company's ability to expand its order book. Its impact on revenue and earnings will depend on when contracts are secured and how execution progresses.

LNG projects also stand out as a source of execution and cost risks. Mirae Asset said Nigeria's Train 7 LNG project had faced delays and that the company recognized the associated indirect costs upfront in the second quarter. The report said the plant cost ratio reached 96.6% as a result of those costs. This comes against the backdrop of the company's comments that fewer active sites led to lower second-quarter sales, while profitability in the building division improved and cost ratios remained stable. Tracking costs on ongoing projects, alongside awards for new projects, therefore remains central to assessing the company's performance after the results are released.