PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Having turned from an operating loss to sustained profit growth over three straight years, KCC E&C is reinforcing its business base through the Switzen brand and expanding non-residential and public-sector orders.
Operating margin improved for three consecutive years, from –0.1% in 2022 to 4.8% in 2025.
Owner net income over the latest four quarters (Q3 2025–Q2 2026) totaled KRW 47.2 billion.
In 2026, the company won a string of orders including redevelopment projects in Busan's Munhyeon District 6 and Daejeon's Sanseong-dong District 1.
The debt ratio remained elevated at 186.5% in 2025, but operating cash flow turned positive for the first time that year.
Ongoing share realignment among the three KCC Group brothers ahead of a potential group split remains an unresolved governance variable.
KCC E&C is a general contractor operating across four segments—housing, building, civil engineering, and plant—and ranked 20th nationwide in the Ministry of Land, Infrastructure and Transport's 2025 construction capability evaluation.
In housing, the company expands supply through its Switzen apartment brand, winning redevelopment projects in Seoul and the metropolitan area as well as in regional cities such as Daegu, Busan, and Daejeon.
In civil infrastructure, the firm has secured a stable pipeline of public-sector backlog by leveraging its competitiveness in turnkey design-build contracts for expressways, railways, and ports.
Public works and plant projects account for a meaningful share of the overall revenue mix, giving the company a structure that can adapt to downturns in any single segment.
Captive-market demand from group affiliates such as KCC and KCC Glass—plant expansions and headquarters construction—also supports the revenue base during construction downturns.
Recently the company has secured a string of non-residential and residential orders, including an office building in Seoul's Yangdong District (KRW 153.9 billion), redevelopment in Busan's Munhyeon District 6 (KRW 556.6 billion), redevelopment in Daejeon's Sanseong-dong District 1 (KRW 317.8 billion), a logistics center in Yeoju (KRW 305.7 billion), and housing in Hyangnam's Hagil district (KRW 238.8 billion).
In September the company plans to launch sales for 'Hyangnam Station Grove Switzen' in Hwaseong, a 933-unit complex with two basement and 29 above-ground floors, extending its housing revenue pipeline.
This balanced order strategy is viewed as creating a business structure not overly reliant on any one segment, supporting sustainable growth as a contractor.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩487.2B | ₩17.1B | 3.5% |
| 2025Q3 | ₩450B | ₩30.7B | 6.8% |
| 2025Q4 | ₩446.7B | ₩11.6B | 2.6% |
| 2026Q1 | ₩355.9B | ₩20.4B | 5.7% |
| 2026Q2 | ₩379.9B | ₩16.3B | 4.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.9T | -₩1.1B | ₩4.4B | −0.1% | 1.0% | 165.9% |
| 2023 | ₩1.9T | ₩18.1B | ₩10.4B | 1.0% | 2.3% | 178.1% |
| 2024 | ₩1.8T | ₩64.6B | ₩16B | 3.5% | 3.1% | 190.8% |
| 2025 | ₩1.8T | ₩88.3B | ₩45.4B | 4.8% | 8.2% | 186.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
After posting an operating loss of KRW 1.1 billion in 2022, KCC E&C recorded operating profit of KRW 18.1 billion in 2023, KRW 64.6 billion in 2024, and KRW 88.3 billion in 2025, marking three straight years of improvement.
Operating margin also rose steadily from –0.1% in 2022 to 1.0% in 2023, 3.5% in 2024, and 4.8% in 2025.
Revenue grew from KRW 1.893 trillion in 2022 to KRW 1.910 trillion in 2023, then eased to KRW 1.827 trillion in 2024 and KRW 1.833 trillion in 2025—an essentially flat trend suggesting margin improvement, rather than top-line expansion, drove the earnings recovery.
Owner net income jumped from KRW 4.4 billion in 2022 to KRW 45.4 billion in 2025.
On a quarterly basis, operating profit reached KRW 30.7 billion in Q3 2025, one of the stronger readings in the recent window, before easing to KRW 11.6 billion in Q4, then fluctuating moderately at KRW 20.4 billion in Q1 2026 and KRW 16.3 billion in Q2 2026.
Owner net income likewise moved from KRW 14.6 billion in Q3 2025 to KRW 7.9 billion in Q4, KRW 15.7 billion in Q1 2026, and KRW 9.0 billion in Q2 2026, showing clear quarter-to-quarter volatility.
Summed over the latest four quarters (Q3 2025–Q2 2026), owner net income reached KRW 47.2 billion, indicating that the annualized earnings scale has stepped up a level.
On the cash-flow side, operating cash flow ran counter to reported earnings in 2022–2024 at –KRW 78.2 billion, –KRW 6.3 billion, and –KRW 207.5 billion respectively, before turning positive at +KRW 112.9 billion in 2025—a signal that could point to improved earnings quality. The debt ratio rose from 165.9% in 2022 to 190.8% in 2024 before easing slightly to 186.5% in 2025.
Korea's construction industry has faced a combination of high interest rates, project-financing (PF) strains, and accumulated unsold inventory, though favorable signals such as rate-cut expectations, reduced PF uncertainty, and stabilizing construction costs have also emerged; still, cumulative weakness in leading indicators such as new starts and regional polarization continue to constrain recovery.
In a second-half 2026 seminar, the Korea Research Institute for Construction Policy projected domestic construction orders would rise 8.9% year-on-year to KRW 240.8 trillion and construction investment would grow 0.3% to KRW 266.1 trillion this year.
However, the institute noted that while the public and civil-engineering sectors would partly offset downside, the recovery felt by the private non-residential sector, regional markets, and smaller contractors would remain limited.
The housing market is expected to see upward pressure concentrated in the Seoul metropolitan area, while regional markets show growing differentiation between prime and less-favored locations.
Unsold housing inventory remains elevated, with the continued rise in post-completion unsold units cited as a downside factor for the construction cycle. A 7.9% year-on-year increase in the 2026 SOC budget is creating a relatively favorable environment for the civil-engineering segment.
Against this backdrop, KCC E&C is seen as maintaining a business structure not overly reliant on any single segment, through an order strategy that balances civil engineering, plant, and non-residential building alongside housing.
KCC E&C has stated a policy of maintaining stable operations in 2026 by securing new redevelopment and reconstruction orders while selectively bidding on higher-profitability projects.
In September, the company plans to launch sales for 'Hyangnam Station Grove Switzen' in Hwaseong, a 933-unit complex with unit sizes ranging from 71 to 147 square meters.
Large already-contracted projects—including the 1,582-unit Busan Munhyeon District 6 redevelopment, the 924-unit Daejeon Sanseong-dong District 1 redevelopment, and a logistics center in Yeoju targeted for completion in the second half of 2028—are expected to be recognized as revenue in stages.
Large non-residential projects are also underway, including an office building in Seoul's Yangdong District (contract running through January 2031) and a new building at Chung-Ang University's Seoul campus (targeted for completion in August 2029).
Industry-wide, construction investment is expected to see a modest recovery in 2026, with public works and civil engineering cushioning downside risk—conditions that could be relatively favorable for a contractor like KCC E&C with meaningful public-works exposure.
That said, unsold inventory risk in regional housing markets remains, meaning earnings volatility tied to regional pre-sale performance could persist.
The price-to-book ratio reflects a market value well below net asset value, meaning the shares trade at a considerable discount to book value per share. With earnings having recovered since turning from a loss to a profit, the price-to-earnings ratio also sits near the lower end of its historical trading band.
The company has a history of paying an annual cash dividend, making dividend capacity another metric worth tracking alongside the earnings recovery.
That said, valuation multiples vary widely across individual construction names on KOSDAQ depending on balance-sheet structure and order backlog, so multiple comparisons alone are less informative than tracking the quality of earnings and the persistence of cash-flow improvement.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Operating margin improved for three straight years, from –0.1% in 2022 to 4.8% in 2025, showing a clear profitability recovery. Operating cash flow also turned positive for the first time in 2025, at +KRW 112.9 billion, indicating improved earnings quality alongside the margin gain.
Owner net income over the latest four quarters totaled KRW 47.2 billion, suggesting the annualized earnings scale has stepped up a level.
In 2026, the company has secured a string of non-residential orders alongside redevelopment projects in Busan's Munhyeon District 6 and Daejeon's Sanseong-dong District 1, including an office building, a logistics center, and a university building in Seoul.
Captive-market demand from group affiliates such as KCC and KCC Glass for plant and headquarters construction also supports the revenue base. With business spread across civil engineering, plant, building, and housing, exposure to any single segment's downturn is seen as relatively limited.
The stock trades at a price-to-book ratio well below net asset value, creating a gap between accounting capital and market value. Owner equity has grown steadily, from KRW 508.6 billion in 2024 to KRW 552.6 billion in 2025. This capital build-up alongside the earnings recovery is a trend worth continuing to monitor.
The debt ratio rose from 165.9% in 2022 to 190.8% in 2024 before easing slightly to 186.5% in 2025, but remains elevated. Given the nature of the construction business, risks such as PF-related contingent liabilities or unbilled construction receivables can expand with the economic cycle.
Quarter-to-quarter earnings volatility is also significant, warranting continued verification of stable cash generation.
Unsold housing inventory remains elevated, with the continued rise in post-completion unsold units cited as a downside factor for the construction cycle.
Polarization between the Seoul metropolitan area and regional markets is expected to deepen in 2026, which could affect the profitability of housing projects with regional exposure. If pre-sale performance varies significantly by region, the timing and scale of future revenue recognition could see greater volatility.
Since the passing of honorary chairman Chung Sang-yung in 2021, KCC Group has operated under a system where three brothers—Chung Mong-jin, Chung Mong-ik, and Chung Mong-yeol—separately run KCC, KCC Glass, and KCC E&C respectively, but the share realignment needed for a formal group split has not yet been completed.
Industry observers have floated the possibility of structural changes, such as share swaps, as Chairman Chung Mong-yeol of KCC E&C unwinds his stakes in KCC and KCC Glass. This ownership restructuring process could lead to changes in shareholding or transaction structures that warrant continued monitoring.
The debt ratio remained elevated at 186.5% in 2025, and quarterly operating profit and net income have shown significant volatility. Given the nature of the construction industry, potential risks such as PF-related contingent liabilities or unbilled construction receivables can expand with the economic cycle.
While operating cash flow turning positive in 2025 is a favorable development, whether this trend persists needs to be confirmed over multiple quarters.
Accumulated unsold housing inventory and regional polarization remain downside factors for the construction cycle. If government execution of the SOC budget and expanded public housing orders falls short of plan, it could affect orders in the civil-engineering and public sectors. A renewed tightening of the PF market could also worsen financing conditions across private housing projects.
Cross-shareholdings among the three KCC Group brothers have not yet been fully resolved, leaving uncertainty around the timing and method of any eventual group split. Ownership structure or major shareholder composition could change in the process of any share swap or sale. Such changes could represent a variable that is difficult to predict from a minority shareholder's perspective.
Check the launch of 'Hyangnam Station Grove Switzen' (933 units) in Hwaseong and the initial pre-sale contract rate.
The Q3 2026 earnings disclosure will be a point to reconfirm operating margin and owner net income trends.
Progress on groundbreaking and revenue recognition for newly won projects such as the Busan Munhyeon District 6 and Daejeon Sanseong-dong District 1 redevelopments should be monitored.
Disclosures and media reports on share realignment among the three KCC Group brothers and any progress toward a group split should continue to be tracked.
Actual execution of the government's SOC budget and expanded public housing order policy should be verified.
KCC E&C turned from an operating loss in 2022 to operating profit of KRW 88.3 billion in 2025, marking three consecutive years of profitability improvement, and operating cash flow turned positive for the first time in 2025, indicating improved earnings quality alongside the margin gain.
Owner net income over the latest four quarters totaled KRW 47.2 billion, suggesting the annualized earnings scale has stepped up, while the non-residential and public order pipeline, along with the Switzen pre-sale schedule, continues into 2026.
That said, the debt ratio remains elevated at 186.5% and quarterly results show clear volatility, warranting continued verification of the durability of the earnings recovery.
On the industry side, public works and civil engineering are cushioning downside risk, while the private housing market still faces constraints from regional unsold inventory and market polarization.
Uncertainty tied to share realignment among the three KCC Group brothers and a potential group split also remains a governance variable.
In terms of valuation, the shares trade below net asset value, which can be read as a market assessment reflecting the industry backdrop and balance-sheet structure—suggesting that tracking the persistence of earnings and cash-flow improvement is more informative than relying on multiples alone.
Report written 2026-09-05 · Data as of 2026-09-04
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