DY Q1 2026 Consolidated Operating Profit Falls 49.5% to KRW 8.3B; Proposes Merger with Wholly-Owned Subsidiary DY Innovate

Consolidated Q1 2026: Revenue KRW 331.5B (+6.2% YoY), Operating profit KRW 8.3B (-49.5% YoY), Net profit KRW 7.7B (-42.7% YoY)
Holding company standalone: Revenue KRW 9.7B, Operating loss KRW 1.0B, Net loss KRW 1.2B (vs net profit KRW 3.8B in Q1 2025)
Decision to merge subsidiary DY Innovate through absorption (effective July 1, 2026; no new shares issued; 100% stake held)
2025 fiscal year dividend: KRW 170 per share (total KRW 4.5B), up from KRW 120 previous year
Debt-to-equity ratio: Consolidated 76.6% (holding company 9.5%), sound financial structure
FX forward contract valuation losses widened (year-end rate 1,513 won/USD); derivative liabilities KRW 2.1B (vs KRW 0.3B at prior year-end)
Three pending lawsuits with total claim of approx. KRW 0.67B; outcome unpredictable