KUMHO Engineering & Construction금호건설

Kumho E&C is back to small profits after a loss-making 2024, but its balance sheet is heavily leveraged and the shares have fallen 22.6% over the past month.

Kumho Engineering & Construction reported trailing twelve-month revenue of about ₩2.0T and net income of about ₩77B to H1 2026, with an operating margin of 2.7%. Its 2025 results were profitable after a large loss in 2024, and liabilities are about 4 times equity. Recent filings center on convertible bond and debt-related decisions, plus several amended sales contracts.

What stands out

• Revenue has been roughly flat at ₩1.9T to ₩2.2T across 2021 to H1 2026, while profit has swung sharply, including a net loss of about ₩226B in 2024.
• Trailing free cash flow is negative at about -₩7.9B, and borrowings of ₩128.6B exceed cash of ₩140.1B only slightly on a net basis.
• Liabilities to equity is 405.5%, a high leverage level that the data does not explain further.
• The DCF-based fair value model gives a base of ₩23,039 against a close of ₩10,030, with a bear case of ₩8,609 and a bull case of ₩48,880; these are model outputs, not forecasts.
• Foreign ownership fell from 4.3% to 0% over 60 days, while retail investors were net buyers over the last 20 days.

What to watch

• Terms and dilution effects of the convertible bond issue and the debt-related filings made in October 2026, which the data does not detail.
• Whether recent contract amendments and new order wins translate into stable operating margins, given the 2.7% TTM level.
• Pending lawsuit and the management matter flagged in September 2026 filings; the data does not describe their scope.