1. What Happened? Q2 Earnings Summary

GS E&C reported revenue of KRW 31.96 trillion, operating profit of KRW 1.62 trillion, and a net loss of KRW 627 billion for Q2 2025. Operating profit surpassed expectations by 54%, but the company recorded a substantial net loss, contrary to market forecasts.

2. Why These Results? Earnings Analysis

The increase in operating profit can be attributed to positive factors such as the strong brand power of Xi and the resumption of investments in the Middle East. However, the net loss likely stems from unexpected cost increases, one-off losses, or provisions related to the Geomdan New Town incident. Further clarification from the company is needed.

3. What’s Next? Outlook and Investment Strategy

With ongoing negative factors like the domestic and global economic slowdown, rising raw material prices, and a high-interest rate environment, the Q2 net loss poses a significant burden on GS E&C. Increased stock price volatility is expected in the short term, requiring cautious investment decisions. Investors should closely monitor the company’s strategies for improving earnings and managing risk.

4. Investor Action Plan

  • • Thoroughly review GS E&C’s further disclosures and IR materials to understand the reasons for the net loss.
  • • Pay close attention to changes in the construction industry and macroeconomic indicators.
  • • Exercise caution with short-term investments due to volatility and carefully evaluate the company’s growth strategies and risk management capabilities for long-term investments.