KOSPIConstruction & Materials028260

Samsung C&T

₩346,000▼ 0.29%2026-10-02 close

Market Cap

₩56.1T

Turnover

₩77.9B

Volume

230,000 shares

Shares out.

160M

PER

21.5×

PBR

—

EPS

₩17,070

Dividend Yield

0.76%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩2,800 per share · Prices as of the 2026-10-02 close

Report overview

Margin Recovery and Affiliate Dividends: Two Axes Under Test

Samsung C&T posted a quarterly operating profit above the KRW 1 trillion mark in 2Q 2026 on sharply higher revenue, and the next phase hinges on whether construction margins keep recovering while affiliate dividend inflows materialize.

1
The company reported preliminary 2Q 2026 revenue of KRW 11.9951 trillion and operating profit of KRW 1.0317 trillion, with first-half revenue of KRW 22.4609 trillion and operating profit of KRW 1.7521 trillion, up 13.7% and 18.6% year on year.
2
The annual operating margin rose for four consecutive years, from 5.9% in 2022 to 8.1% in 2025, while the debt-to-equity ratio fell from 84.5% to 50.5% over the same period (confirmed financials).
3
The construction division's operating margin improved from 3.2% in 1Q 2026 to 5.1% in 2Q, and management said first-half high-tech orders reached KRW 6.4 trillion, above pace for the KRW 6.8 trillion annual target.
4
Guidance for 2026 was set at KRW 23.5 trillion in orders and KRW 44.5 trillion in revenue, and in the April call the housing contract target was raised to as much as KRW 13 trillion.
5
On the other side, management flagged possible third-quarter softness at the trading division due to weak commodity markets and EU steel import quotas, and the resort division's 2Q operating profit fell year on year on weaker leisure demand.

Business structure

Samsung C&T directly operates four business divisions - construction, trading, fashion and resort - while also holding equity stakes in group affiliates including Samsung Electronics, Samsung Life and Samsung Biologics.

For 2Q 2026 the company disclosed construction revenue of KRW 3.988 trillion with operating profit of KRW 202 billion, trading revenue of KRW 4.703 trillion with operating profit of KRW 142 billion, fashion revenue of KRW 593 billion with operating profit of KRW 54 billion, and resort revenue of KRW 1.092 trillion.

The construction division rests on the Raemian housing brand, high-tech work such as semiconductor and display fabs, and overseas plant and infrastructure projects; in the second quarter the company cited the ramp-up of high-tech construction and solid progress on overseas plant projects as drivers of higher revenue and profit.

Captive orders are a meaningful part of the mix: cumulative related-party revenue through the third quarter of 2024 was KRW 5.318 trillion, more than 30% of construction division revenue in that period.

The trading division spans steel, chemical and fertilizer trading, overseas business operations and renewable development, while fashion covers in-house and imported brands and resort centers on catering, food distribution and leisure facilities.

In urban redevelopment bidding the company highlights the highest credit rating among builders (AA+) as a financing advantage.

In the first half of 2026 it won KRW 4.7163 trillion across five Gangnam and Seocho sites - Daechi Ssangyong 1, Apgujeong District 4, Shinbanpo 19/25 integrated reconstruction, Bangbae Shin Samho and Gaepo Woosung 4 - all as sole bidder except Shinbanpo 19/25.

Competition runs against large builders such as Hyundai E&C, GS E&C, Daewoo E&C and Samsung E&A in redevelopment and plant tenders, while data center and nuclear work involves partnership structures with global EPC firms.

On the shareholder side, KCC is the second-largest holder with a 10.49% stake, linking Samsung C&T dividends to payout capacity outside the group as well.

Earnings trend

Quarterly revenue · Operating profit

₩10T₩752.6B25Q2₩10.2T₩993.4B25Q3₩10.8T₩822.3B25Q4₩10.5T₩720.4B26Q1₩12T₩1T26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩43.2T₩2.5T2022₩41.9T₩2.9T2023₩42.1T₩3T2024₩40.7T₩3.3T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩10T	₩752.6B	7.5%
2025Q3	₩10.2T	₩993.4B	9.8%
2025Q4	₩10.8T	₩822.3B	7.6%
2026Q1	₩10.5T	₩720.4B	6.9%
2026Q2	₩12T	₩1T	8.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩43.2T	₩2.5T	₩2T	5.9%	7.7%	84.5%
2023	₩41.9T	₩2.9T	₩2.2T	6.9%	6.5%	65.7%
2024	₩42.1T	₩3T	₩2.2T	7.1%	7.2%	66.4%
2025	₩40.7T	₩3.3T	₩2.4T	8.1%	4.9%	50.5%

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

Earnings analysis

On confirmed figures, 2025 revenue of KRW 40.7422 trillion was lower than the KRW 42.1032 trillion of 2024, yet operating profit rose to KRW 3.2927 trillion, lifting the operating margin to 8.1%.

That margin improved for four straight years - 5.9% in 2022, 6.9% in 2023, 7.1% in 2024 and 8.1% in 2025 - while revenue declined from KRW 43.1617 trillion to KRW 40.7422 trillion over the same span.

In other words, profit quality recovered ahead of top-line growth; 2025 net profit attributable to owners was KRW 2.4391 trillion and operating cash flow was KRW 3.0237 trillion.

On the balance sheet, total equity expanded from KRW 37.2585 trillion in 2024 to KRW 57.4969 trillion in 2025 and the debt-to-equity ratio fell from 66.4% to 50.5%.

Quarterly, revenue rose from KRW 10.0221 trillion in 2Q 2025 to KRW 11.9951 trillion in 2Q 2026, and operating profit from KRW 752.6 billion to KRW 1.0317 trillion. First-half 2026 revenue reached KRW 22.4609 trillion and operating profit KRW 1.7521 trillion, up 13.7% and 18.6% year on year.

On divisional profitability, the construction operating margin improved from 3.2% in the first quarter to 5.1% in the second, and management said the improvement reflected the restart of P5 investment and solid execution of high-tech projects, with a larger contribution expected in the third quarter.

Net profit attributable to owners, however, slipped from KRW 844.2 billion in 1Q 2026 to KRW 595.5 billion in 2Q, so the direction of operating profit and bottom-line profit diverged - a reminder that non-operating items, equity-method results and tax effects matter here.

The resort division also grew revenue on wider catering and food distribution but saw operating profit fall year on year as leisure demand weakened, underlining the uneven picture across divisions.

Industry analysis

Korea's construction cycle is shifting away from a housing-start slump toward prime Seoul redevelopment and high-tech and energy infrastructure orders.

The company put the 2026 domestic redevelopment order pool at about KRW 75 trillion and said it would bid selectively in prime locations such as Apgujeong, Yeouido, Seongsu and Mokdong.

For high-tech work, the pace of semiconductor investment is the swing factor; analysis cited a return to track for previously stalled high-tech construction and the ramp of revenue recognition at large overseas plants as the driver of top-line growth in 4Q 2025.

Data centers and nuclear power are the stated new growth axes: the company is pursuing KRW 10.1 trillion of EPC orders across energy, civil and building work, up KRW 3.3 trillion from KRW 6.8 trillion a year earlier, and classifies data centers, solar, large nuclear and SMRs as new growth areas.

On competitive position, industry commentary points to sole-bid wins in prime Seoul redevelopment on the back of brand strength and technical capability, yet large sites such as Mokdong and Yeouido still imply head-to-head contests among major builders.

Cost and geopolitical variables remain: the company said it is executing 10 projects in the UAE, Qatar and Saudi Arabia, that the impact so far has been minimal, and that schedule delays and direct or indirect costs can be compensated under force majeure clauses in the contracts.

On the other side, management itself flagged that weak commodity markets and EU steel import quotas could slow the trading division in the third quarter, showing the asymmetry within the portfolio.

In short, brand power in redevelopment, captive order volume and the speed of entry into energy and data center work are what separate builders now, more than the construction cycle itself.

Outlook

The company set 2026 guidance at KRW 23.5 trillion of orders and KRW 44.5 trillion of revenue, well above its 2025 targets of KRW 19.6 trillion and KRW 40.7 trillion.

At the second-quarter results briefing, management said it expects full-year 2026 revenue and operating profit to exceed the existing guidance, helped by continued strength in high-tech construction and other project work.

In housing, the contract-award target was raised from KRW 7.7 trillion at the start of the year to as much as KRW 13 trillion, and industry watchers expect annual redevelopment orders to top KRW 10 trillion if the Mokdong projects proceed on schedule in the second half.

High-tech orders stood at KRW 6.4 trillion in the first half, with management expecting the full-year figure to exceed the KRW 6.8 trillion target.

In energy, Fluor has been confirmed as prime contractor for Romania's Cernavoda units 3 and 4, with Samsung C&T planning to participate as construction partner in a project whose total EPC value is cited at USD 15-20 billion.

Still, Vietnam's large nuclear tender is only slated for second-half 2026 participation, Romania's contractor selection is expected around end-2026, and the NuScale SMR main EPC contract in Romania is targeted for 2027 - most of these remain in the pipeline rather than booked.

In data centers, the company will build a 2.4 MW modular AI data center in Chuncheon with Samsung SDS for about KRW 60 billion, targeting completion in the second half of 2028, with Samsung C&T as builder.

On the affiliate axis, the announced acquisition of Swiss peptide CDMO PolyPeptide for KRW 2.7 trillion through Samsung Biologics means the execution pace of non-construction growth options is also on the watch list.

Valuation

PER

21.5×

PBR

—

ROE

4.0%

EPS

₩17,070

BPS

—

Dividend per share

₩2,800

The multiples here are set by two mixed axes - operating profit from construction, trading, fashion and resort, and the value of equity stakes in affiliates - so an earnings-based multiple alone does not explain the structure.

Price-to-book readings in particular differ noticeably across data providers depending on which net-asset base is used, and since confirmed financials show total equity expanding substantially in 2025 versus 2024, the choice of book-value basis drives how the multiple is read.

On dividends, the company's stated policy is to return about 60-70% of dividend income received from affiliates, with the minimum dividend per share raised to KRW 2,500, so the actual payout is tied to affiliate dividend decisions.

On that affiliate variable, Samsung Electronics disclosed on August 21 that it expects remaining 2026 shareholder-return resources of roughly KRW 90-110 trillion and plans about KRW 30 trillion of cash dividends in the third quarter including the regular quarterly dividend, with the exact amount and record date to be fixed at the late-October board meeting.

As for sell-side views, IBK Investment & Securities said in an early-September 2026 report that scope for shareholder-value enhancement could widen as both affiliate cash inflows and the value of held stakes rise, while lowering its target price to KRW 540,000.

Earlier, on June 19, 2026, DS Investment & Securities raised its target price from KRW 380,000 to KRW 620,000 and LS Securities from KRW 550,000 to KRW 630,000.

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

Bull factors

Construction margin recovery and returning high-tech volume

The construction operating margin improved from 3.2% in 1Q 2026 to 5.1% in 2Q, and management attributed this to the restart of P5 investment and high-tech project execution, expecting a bigger contribution in the third quarter.

First-half high-tech orders of KRW 6.4 trillion were described as running above the KRW 6.8 trillion annual target. Confirmed financials also show the annual operating margin rising from 5.9% in 2022 to 8.1% in 2025, leaving room for volume and margin to move in the same direction.

Redevelopment brand strength and sole-bid dynamics

In the first half of 2026 the company won KRW 4.7163 trillion across five Gangnam and Seocho sites, mostly as sole bidder. Industry expectations point to annual redevelopment orders exceeding KRW 10 trillion if the Mokdong projects proceed on schedule in the second half.

Its position as the highest-rated builder (AA+) is used as a financing advantage that reduces funding risk for owner associations. That said, sole-bid prospects are not signed contracts and depend on association timetables.

Payout structure linked to affiliate dividends

The company's policy is to return about 60-70% of affiliate dividend income, with the minimum dividend per share raised to KRW 2,500.

Alongside this, Samsung Electronics expects remaining 2026 shareholder-return resources of roughly KRW 90-110 trillion and plans about KRW 30 trillion of cash dividends in the third quarter, keeping the inflow channel structurally open.

IBK Investment & Securities said scope for real shareholder-value enhancement could be wider than before because affiliate cash inflows and stake values are rising together. The actual amounts still depend on affiliate board decisions and are not yet fixed.

Bear factors

Flagged slowdown at the trading division

Management said the trading division's third-quarter results could slow because of weak commodity markets and EU steel import quotas. Trading posted 2Q 2026 revenue of KRW 4.703 trillion, a large slice of consolidated revenue, so swings in trading margins can translate into earnings volatility.

Since steel, chemical and fertilizer trading plus overseas operations drove the upside, the same factors can work in reverse. Trade restrictions are an external variable the company cannot control.

Nuclear and overseas pipeline still largely unbooked

Vietnam's large nuclear tender is set for second-half 2026 participation, Romania's contractor selection is expected around end-2026, and the NuScale SMR main EPC contract in Romania is targeted for 2027.

Cernavoda units 3 and 4 are cited as a very large project with total EPC value of USD 15-20 billion, but the scope of participation and contract value must be confirmed through separate disclosures. Schedule slippage or consortium changes would push order recognition further out. Announced plans and signed contracts are different things.

Captive order reliance and capex cycle sensitivity

Cumulative related-party revenue through 3Q 2024 was KRW 5.318 trillion, more than 30% of construction division revenue in that period.

In the past, adjustments to a key client's capex plans raised concerns about high-tech order volume, and sell-side commentary warned that without a high-tech upturn the construction division's results would suffer. If the semiconductor investment cycle slows again, the pace of revenue recognition could fall quickly. Revenue tied to one major client's decisions cuts both ways for predictability.

Risk factors

Policy and permitting

In redevelopment, award timing swings with owner-association decisions and permitting schedules.

For Seongsu Strategic Redevelopment District 3, only Samsung C&T attended the site briefing and the association plans to decide on a negotiated contract on September 19-20; any delay in such decisions pushes back the annual order plan as well.

Mokdong Complex 14, with construction costs above KRW 3 trillion, is awaiting a September bid notice and will select a single contractor without a consortium, which also shapes competitive intensity. Changes in sale-price or reconstruction rules can alter project economics.

Overseas project execution

The company said it is executing 10 projects in the UAE, Qatar and Saudi Arabia, that the impact so far has been minimal, and that delays and direct or indirect costs can be compensated under force majeure clauses.

Even so, Middle East conditions and logistics and labor availability feed directly into costs and progress rates. Because revenue on large overseas plants follows percentage of completion, a delay at one site can show up as quarterly earnings variance. Currency and material cost moves also flow through depending on contract terms.

Dependence on affiliate decisions

Both payout resources and stake values are tied to affiliate earnings and dividend decisions. Samsung Electronics' total dividend, dividend per share and record date will be fixed at the late-October board meeting, so the scale of Samsung C&T's own payout only becomes concrete after that.

It is also worth noting the company's own caveat that the resource figure is an estimate, not a fixed amount, and will vary with second-half earnings, capex and cash flow.

In addition, large investments such as the KRW 2.7 trillion acquisition executed through Samsung Biologics can shift group-level priorities for cash allocation.

What to watch next

September 19-20, 2026
The Seongsu District 3 association is scheduled to decide on a negotiated contract for a project cited at up to 72 floors and 2,213 units with total project cost of about KRW 1.8275 trillion. The outcome and its timing are the first checkpoint for second-half redevelopment order progress.
Mokdong tender schedule from September 2026
Mokdong Complex 14 is awaiting a September bid notice and will pick a single contractor without a consortium, while for Mokdong Complex 13, with estimated construction cost of about KRW 2.3763 trillion, the company is preparing to work with US design firm SMDP. The number of bidders and the award outcomes per complex will determine whether the annual housing order target is met.
Late October 2026
Samsung Electronics' board is scheduled to fix the total amount, per-share dividend and record date for its third-quarter cash dividend. Because Samsung C&T's policy is to return 60-70% of affiliate dividend income, this decision is the key variable for the size of its payout resources.
Around late October 2026 third-quarter results
Two things to watch. First, whether the construction operating margin, up from 3.2% in the first quarter to 5.1% in the second, improves further in the third quarter as management indicated; second, how the trading division actually prints after management flagged possible softness from weak commodities and EU steel quotas.
End-2026 to 2027
The calendar includes Romania's large-nuclear contractor selection expected around end-2026, participation in Vietnam's large-nuclear tender, and the main NuScale SMR EPC contract in Romania targeted for 2027. Whether plan-stage announcements convert into signed contracts and disclosures is the dividing line for visibility on energy orders.

Overall view

The first half of 2026 was a period in which both scale and profit grew for Samsung C&T. On confirmed financials, the 8.1% operating margin in 2025 marked a fourth straight year of improvement from 5.9% in 2022, and 2Q 2026 revenue was KRW 11.9951 trillion with operating profit of KRW 1.0317 trillion.

By division, the construction operating margin rose from 3.2% in the first quarter to 5.1% in the second, while resort operating profit fell year on year on weaker leisure demand, showing an uneven mix.

The company guided to KRW 23.5 trillion of orders and KRW 44.5 trillion of revenue for 2026, and management said it expects full-year revenue and operating profit to exceed that guidance.

On the other side of the ledger sit the flagged possibility of third-quarter softness in trading and a nuclear pipeline that is still pre-contract.

Valuation blends operating earnings with affiliate stake values, so the reading of book-value multiples shifts with the net-asset basis used, and the size of the payout will only become concrete after the affiliate board decision in late October.

This report is for information purposes and does not contain buy or sell recommendations to be relied upon for investment decisions.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.