KUMHO Engineering & Construction금호건설

KUMHO E&C shows a thin but positive trailing profit after a loss-making 2024, while the share price has fallen sharply over the last month.

Trailing twelve-month revenue to H1 2026 is about ₩2.0T with a small operating margin of 2.7% and net income of about ₩77B. Leverage is high, with liabilities at 405.5% of equity, and free cash flow over the period was negative at about -₩7.9B. The share price is ₩8,410, down 31.6% over one month but up 138.2% over one year.

What stands out

• The 2024 loss of about -₩226B was followed by a 2025 net profit of about ₩64B on revenue of about ₩2.02T, a 5.4% increase.
• Trailing operating margin is 2.7% and net margin is 3.9%, both thin for a construction firm, and the reported ROE of 29.9% is inflated by a small equity base.
• The valuation metrics given (P/E about 4, P/B 1.1, dividend yield 2.4%) sit well below the 5-peer set where some peers have P/E above 17, though low multiples can reflect earnings risk.
• The company filed a convertible bond issue decision, a debt guarantee for another party, and an equity-treated debt issuance in October 2026, and several amended major sales contract filings.
• Recent headlines are mostly operational: a Siheung housing launch, executive personnel changes effective November 1, and a KFTC on-site inspection over suspected bid rigging at six construction firms including KUMHO E&C.
• Foreign ownership fell from 2.6% to 0% over 60 days, and the 20-day investor flows show foreign net buying of about ₩1.3B against retail net selling of about ₩847M.

What to watch

• Details and dilution effect of the convertible bond and equity-treated debt issuance, which the data does not fully describe.
• Outcome of the KFTC bid-rigging inspection and the lawsuit filed in September 2026.
• Next periodic results, since free cash flow was negative on a trailing basis and borrowings of about ₩129B sit against cash of about ₩140B.