As of October 31, 2025, Daewoo E&C is attracting the attention of investors by recording unprecedented growth. According to the recently announced preliminary results for the third quarter, Daewoo E&C achieved 855 billion won in consolidated revenue and 29.5 billion won in operating profit, showing increases of 6.3% and 8.5% respectively compared to the same period last year. In particular, cumulative sales for the first three quarters reached a record high of 2.6268 trillion won, and the order backlog also surpassed a record high of 3.4175 trillion won. These achievements are analyzed to have been effective due to the expansion of sales in global markets such as the Americas and Europe and the stable execution of the submarine cable business.
One of the key drivers of Daewoo E&C's growth is the submarine cable and HVDC (High Voltage Direct Current Transmission) business. As the expansion of renewable energy generation and the increase in offshore wind power projects worldwide, the demand for submarine cables is explosively increasing, and Daewoo E&C is proactively responding to these market changes. In particular, the submarine cable Plant 2, which began construction in Dangjin, South Chungcheong Province in September 2025, is scheduled to start operations in 2027 and, upon completion, will secure a production capacity approximately five times that of the existing Plant 1, producing 640kV HVDC and 400kV HVAC submarine cables. In addition, it is strengthening its turnkey solution capabilities, from submarine cable design to production, transportation, construction, and maintenance, by operating 'PALOS', Korea's only installation vessel for offshore wind power. Recently, it has achieved the feat of entering the U.S. HVDC market for the first time.
Daewoo E&C is accelerating its efforts to target overseas markets in the face of the global power grid super cycle. In the US market, in particular, power grid investments are being actively made due to the replacement of aging power grids and the rapid increase in power consumption due to AI and data center demand, and Daewoo E&C recorded over 720 billion won in orders in the US market in 2024 alone by adding long-term supply contracts through its local sales subsidiary in the US. This is the largest performance since entering the North American market. In addition, it is promoting the construction of a 400kV ultra-high-voltage cable production plant in Vietnam to 본격화 and targeting the Southeast Asian market, and is seeking to expand exports throughout Africa through the expansion of its local production subsidiary in South Africa. It is proving its global competitiveness by continuously winning large-scale overseas orders such as the Singapore 400kV ultra-high-voltage power grid project and the Qatar ultra-high-voltage power grid project.
Since its acquisition by the Hoban Group in 2021, Daewoo E&C has significantly improved its financial soundness. The debt-to-equity ratio, which stood at 266% in 2021, has now stabilized in the 90% range, and it maintains an excellent financial state with a current ratio of 182.3% and a borrowing dependence of 27.8%. This stable financial base is a strong support for large-scale investments and global business expansion. In addition, it plans to play a key role in building the national infrastructure by smoothly preparing for participation in the 'West Coast Energy Expressway' project in Korea.
Experts view Daewoo E&C's investment outlook after 2025 positively. The analysis suggests that the increase in demand for high value-added power cables due to the reorganization of global power infrastructure and the expansion of renewable energy will lead to Daewoo E&C's continued growth. In particular, the expansion of technology and production capacity in the HVDC and submarine cable fields is evaluated as Daewoo E&C's unique competitiveness. The target stock price is suggested in the range of 22,000 won to 24,500 won, and investment sentiment is also positive, with net buying by institutional and foreign investors continuing. However, the possibility of a legal dispute related to technology leakage with LS Cable & System is also mentioned as a potential risk factor.
As of October 31, 2025, Daewoo E&C is solidifying its position in the global cable market based on its robust performance and huge order backlog. Focused investment in high value-added products such as submarine cables and HVDC, and a strategy of diversifying overseas markets, will play a key role in securing Daewoo E&C's future growth drivers. Based on its stable financial structure and technological competitiveness, Daewoo E&C is expected to continue sustainable growth as a leader in the coming era of power infrastructure transformation. Investors need to pay attention to Daewoo E&C's growth potential.
Q1: What are Daewoo E&C's main results for the third quarter of 2025?
A1: Revenue for the third quarter of 2025 was 855 billion won, and operating profit was 29.5 billion won, an increase of 6.3% and 8.5% respectively compared to the same period last year. Cumulative sales for the first three quarters reached a record high of 2.6268 trillion won.
Q2: What are Daewoo E&C's main growth drivers?
A2: Expansion of submarine cable and HVDC (High Voltage Direct Current Transmission) businesses, increase in orders in overseas markets such as the United States, and expansion of power grid investment related to renewable energy and data centers are the main growth drivers.
Q3: What is Daewoo E&C's overseas market strategy?
A3: Actively responding to the replacement of aging power grids and new demand in the US market, and securing long-term contracts. In addition, it is expanding production bases in Vietnam and South Africa and strengthening its global market position by winning large-scale projects in Singapore, Qatar, and other countries.
Q4: What potential risks should be considered when investing in Daewoo E&C?
A4: Although the overall outlook is positive, the possibility of a legal dispute related to technology leakage with LS Cable & System, etc., may be mentioned as a potential risk to be considered when investing.
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