SGC E&C Swings to Profit in Q1 2026, but Debt Ratio and Litigation Risks Remain

Consolidated revenue KRW 317.8bn (vs. KRW 330.0bn Q1 2025), operating profit KRW 17.9bn (vs. KRW 11.6bn), net profit attributable to controlling interest KRW 8.3bn (vs. net loss) – turnaround to profit
Debt ratio 324.98% (FY2025 end: 310.67%), borrowings up to KRW 687.7bn, worsening financial stability
Plant division accounts for 71.03% of revenue, OP KRW 19.4bn; logistics segment reports operating loss of KRW 2.5bn
Order backlog KRW 2.44trn (FY2025 end: KRW 2.53trn); major projects in Saudi Arabia and Southeast Asia ongoing
34 lawsuits pending with claims totaling KRW 32bn; business suspension order stayed but credit rating downgrade risk exists
Credit rating BBB (Korea Ratings, unchanged since 2022); no corporate bonds issued
No share buyback/cancellation or dividend plans; issued hybrid securities (KRW 80bn) to improve financial health