PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Built on a stable design and supervision business base, the company added new growth areas such as eco-friendly EPC and data centers to post record revenue, but quarterly operating margins continue to swing sharply.
2025 consolidated revenue exceeded KRW 400 billion for the first time at KRW 412.9 billion, with operating profit rising sharply to KRW 6.0 billion versus the prior year.
Q1 2026 operating profit turned positive at KRW 3.98 billion, but Q2 2026 operating profit dropped sharply to KRW 0.37 billion despite a similar revenue level.
Revenue mix is roughly 44% design, 25-27% supervision, and 27-28% construction (EPC), with the construction segment's share steadily expanding since 2023.
The company has set a 'Vision 2030' target of KRW 1 trillion in orders and a 5% operating margin by 2030.
The company is pursuing a combined EPC-plus-operation model through fuel cell power subsidiaries such as Myeongji No. 2 Energy, alongside diversification into private construction projects like data centers and golf courses.
Korea Engineering Consultants Corp. (KECC) was founded in 1963 and listed on the KOSPI in 2011 as a comprehensive construction engineering company, performing planning, feasibility studies, design, and supervision across water supply, water resource development, and other fields.
Revenue is split roughly 44% design, 25-27% supervision, and 27-28% construction (EPC).
In the engineering industry, order awards depend more on technical capability, human resources, and track record than on bid price, and since most clients are public agencies, market size is heavily tied to government policy and SOC budgets.
The company holds a market position ranked second to third in the domestic engineering industry by order performance and revenue, backed by over 60 years of experience across diverse project types.
Since 2023 it has expanded EPC participation in eco-friendly energy, growing the construction segment's share, and holds Myeongji No. 2 Energy—a fuel cell power generation subsidiary in which it owns a 70% stake alongside DASCO's 30%—as a consolidated subsidiary.
More recently it has broadened its construction footprint into a data center in Dokan-dong, Seoul, a public golf course in Pocheon, and hydrogen refueling stations, pursuing portfolio diversification.
The largest shareholder, Korea Engineering Consultants Holdings, together with related parties, holds a 54% stake, providing relatively stable governance.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | — | — |
| 2025Q3 | ₩102.3B | ₩1.2B | 1.2% |
| 2025Q4 | ₩122.5B | ₩4.2B | 3.4% |
| 2026Q1 | ₩98.7B | ₩4B | 4.0% |
| 2026Q2 | ₩99.6B | ₩400M | 0.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩283.7B | ₩5.4B | ₩3.8B | 1.9% | 2.6% | 123.6% |
| 2023 | ₩376.9B | ₩4B | ₩13.3B | 1.1% | 8.5% | 143.3% |
| 2024 | ₩398.9B | ₩900M | ₩6.2B | 0.2% | 4.0% | 166.9% |
| 2025 | ₩412.9B | ₩6B | ₩8.5B | 1.5% | 5.0% | 147.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual revenue rose for four consecutive years, from KRW 283.7 billion in 2022 to KRW 376.9 billion in 2023, KRW 398.9 billion in 2024, and KRW 412.9 billion in 2025. Operating margin, however, moved without clear direction over the same period: 1.9% (2022), 1.1% (2023), 0.2% (2024), and 1.5% (2025).
The sharp drop in operating profit to KRW 0.9 billion in 2024 stemmed largely from construction-site delays and rising cost burdens in the construction segment, which eased in 2025 as operating profit recovered to KRW 6.0 billion.
Net profit attributable to owners swung widely as well: KRW 3.8 billion (2022), KRW 13.3 billion (2023), KRW 6.2 billion (2024), and KRW 8.5 billion (2025). By quarter, operating profit jumped from KRW 1.22 billion in Q3 2025 to KRW 4.22 billion in Q4 2025, and continued improving to KRW 3.98 billion in Q1 2026.
However, in Q2 2026 revenue held near the Q1 level at KRW 99.6 billion (versus KRW 98.7 billion in Q1), yet operating profit slumped to just KRW 0.37 billion, while net profit fell to KRW 1.84 billion, less than half of Q1's KRW 3.95 billion.
This wide quarterly swing reflects the business's structural characteristic in which the timing of cost recognition and losses in the EPC construction segment varies by individual project progress.
On a cash-flow basis, operating cash flow improved from negative KRW 3.7 billion in 2022 to KRW 19.9 billion (2023), KRW 13.4 billion (2024), and KRW 22.0 billion (2025), showing relatively steadier cash generation than the swings in reported earnings.
Korea's construction engineering industry is divided into design, supervision, and construction management (CM), with market size largely determined by SOC investment policy and related regulations since most clients are public agencies.
Since 2023, stagnant government SOC investment constrained industry-wide growth, though 2026 appears to mark a phase of budget expansion.
Competitive intensity is high, and a 2025 revision to the government's engineering business qualification standards carries the potential to somewhat lower entry barriers within the industry.
Within this environment, KECC maintains a market position ranked second to third in the domestic engineering industry by order performance and revenue, holding a competitive edge in water supply, water resources, landscaping, and environment.
At the same time, industry-wide margin constraints on public projects along with heavy labor and outsourcing cost burdens are cited as structural factors limiting profitability in the design and supervision segments.
As a result, many engineering firms are expanding into new areas such as eco-friendly energy EPC and data centers, and KECC is participating in this broader industry diversification trend.
In early 2026, the company unveiled 'Vision 2030,' setting mid-to-long-term targets of KRW 1 trillion in orders, a 5% operating margin, and zero major risk incidents by 2030.
As of Q1 2026, the order backlog stood at KRW 951.6 billion, comprising KRW 405.0 billion in design, KRW 268.5 billion in supervision, and KRW 278.2 billion in construction.
Recent new orders include the Gyeongju Nasan Energy waste oil recycling project (KRW 31.0 billion), the Busan Myeongji Phase 2 fuel cell power EPC project (KRW 30.7 billion), the Pocheon Chudong public golf course construction (KRW 72.0 billion), and the Unjeong Medipolis Hospital construction (KRW 50.9 billion), with these projects scheduled to be reflected in revenue in earnest from 2026.
Preparations for Phase 3 of the Myeongji fuel cell power project are also underway following Phase 2, and the company has stated plans to expand into an "EPC-plus-M" model combining operations management with its EPC construction capabilities.
Management has outlined plans to expand order volume through overseas business, domestic branch operations, and new business activities, while diversifying into relatively weaker areas to strengthen order competitiveness.
However, credit rating agencies have flagged the potential for excessive cost burdens and non-recurring losses in the construction segment, as well as increasing contingent liabilities from completion guarantees and funding support agreements, as future variables to monitor.
The stock trades at a multiple below its net asset value, indicating a notable discount between book asset value and market value.
On the earnings side, since annual net profit has swung widely from year to year without turning negative, profitability multiples calculated on a trailing four-quarter basis should be interpreted against the backdrop of past periods of sharp earnings volatility.
On the dividend side, the fact that the company has maintained annual cash dividends is worth noting from a shareholder-return perspective, though whether the level is relatively high or low within the sector requires comparing dividend policies across individual companies.
Given that construction (EPC) segment volatility drives the direction of earnings, valuation metrics can also move significantly over short periods due to one-off factors in a given quarter.
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 2026-09-05
Building on a stable design-and-supervision core, the addition of eco-friendly EPC, data centers, and private construction projects pushed 2025 revenue past the KRW 400 billion mark for the first time to KRW 412.9 billion.
The order backlog also grew to KRW 951.6 billion as of Q1 2026, laying groundwork for future growth. The company is expanding its portfolio through an EPC-plus-operations model via fuel cell power projects such as Myeongji Energy.
The company maintains a market position ranked second to third in the domestic engineering industry by order performance and revenue, backed by good order competitiveness from over 60 years of experience.
It has maintained a negative net debt position since 2020, reflecting an asset-backed financial structure assessed as sound. With the largest shareholder holding a 54% stake, governance is also relatively stable.
Through 'Vision 2030,' the company set targets of KRW 1 trillion in orders and a 5% operating margin by 2030. In Q1 2026, resolution of one-off construction-segment losses helped lift the operating margin to around 4%, an early signal toward that goal.
Efforts to improve contract pricing, including increased contract amounts in the design and supervision segments, are also underway.
Operating profit, which recovered to KRW 3.98 billion in Q1 2026, plunged to KRW 0.37 billion in Q2. Despite similar revenue levels of roughly KRW 99 billion in both quarters, the profit outcome varied greatly, indicating low earnings predictability.
This is tied to the business structure in which cost recognition timing varies by individual construction project progress.
There is an assessment that annual operating margins in the core design and supervision business have persisted below 2% due to margin constraints on public projects and heavy labor and outsourcing cost burdens.
Despite improvement efforts such as raising contract prices, there is a view that a large near-term improvement in earnings power is unlikely. This implies that growth in the construction segment must drive overall margin improvement.
From 2024 through Q1 2026, construction-site delays and additional cost burdens from rising material prices at some construction segment sites, along with bad debt provisions for trade receivables, weighed on operating results.
The company has provided completion guarantees on some private construction sites, carrying the potential for contingent liabilities to increase. As the unit scale of eco-friendly EPC projects grows, this volatility could continue going forward.
As the construction (EPC) segment's share expands, the progress of individual projects can heighten business and financial volatility relative to the traditional design and supervision business. As seen in the sharp Q2 2026 operating profit decline, quarterly results may continue to be difficult to predict.
Completion guarantees on some private construction sites and funding support agreements related to subsidiaries create the potential for increased contingent liabilities going forward. Funding needs may also rise from equity investments and advance payments made during eco-friendly EPC project execution.
Since most revenue is based on public-sector orders, results are heavily influenced by the scale of government SOC budgets and policy direction.
A 2025 revision to the government's engineering business qualification standards also carries the potential to somewhat lower entry barriers, which could intensify competition.
Around the Q3 earnings release, it will be important to check whether the Q2 operating profit decline was a temporary factor or whether construction-segment cost burdens are persisting.
At the FY2026 annual results release, progress on the first-year targets of 'Vision 2030'—order expansion and operating margin improvement—can be assessed.
It will be worth checking the completion and revenue recognition timing of EPC projects under construction, such as the Myeongji fuel cell power project, to assess the construction segment's contribution to results.
The actual execution of the government's expanded 2026 SOC budget and the real-world impact of the revised engineering business qualification standards should be monitored on an ongoing basis.
KECC has broadened its portfolio beyond a stable design-and-supervision core into eco-friendly EPC, data centers, and fuel cell power generation, achieving record revenue in 2025.
However, earnings volatility tied to the growing construction segment remains pronounced, as the operating margin improvement seen in Q1 2026 slowed sharply again in Q2.
The company has set mid-to-long-term targets of KRW 1 trillion in orders and a 5% operating margin under 'Vision 2030,' with a backlog near KRW 900 billion and multiple new projects that could support future growth.
At the same time, profitability constraints in the public-project-driven design and supervision segment, potential contingent liabilities and non-recurring losses in construction, and shifts in SOC budgets and regulations remain variables to watch.
On the financial side, the company maintains a negative net debt position, suggesting relatively ample capacity to fund business expansion.
Investors would benefit from continuing to track the wide swings in quarterly results alongside the progress of construction-segment projects as the company works toward its mid-term targets.
Report written 2026-09-05 · Data as of 2026-09-04
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