Samsung C&T Construction Unit Forecasts Sharp Drop in Revenue and Profit

Samsung C&T's construction division is expected to see a significant decrease in revenue and operating profit in 2025 due to the reduction in high-margin, high-tech projects. Analysts attribute this downturn mainly to a decline in new orders for core technology sectors such as semiconductors and AI, and a corresponding decrease in revenue from related businesses. High-tech orders have shown a declining trend, falling from 12.3 trillion won in 2023 to 10.5 trillion won in 2024 and an estimated 7.5 trillion won in 2025. The reduced proportion of highly profitable high-tech projects has broadly affected operating profit.

The contraction in the construction sector's scale has been a primary driver of the performance decline. Large-scale projects, including high-tech facilities, are entering their completion stages, leading to reduced revenue recognition and fewer new orders. The construction segment's revenue plummeted by 33.2% to 9.996 trillion won last year, from 14.964 trillion won in 2024.

The construction division's revenue in 2023 was 19.31 trillion won, a 3.5% increase compared to 18.6547 trillion won in 2022. During the same period, operating profit rose by 3.2% to 1.034 trillion won from 1.0013 trillion won in 2022, with an operating profit margin of 5.4% in 2023.

In response, Samsung C&T is seeking a turnaround through portfolio transformation by expanding orders in urban regeneration and plant construction segments.