Hyundai E&C Business Trends and Risk Monitoring — 2026-07-25

Key Business Developments and Risk Signals

• Urban Renewal Projects Gain Momentum: After topping the urban renewal order charts in the first half, Hyundai E&C is anticipating roughly 2 trillion KRW in new orders early in the second half, bolstered by an increase in projects likely to be secured via private contracts through sole bidding.

• Nuclear Project Contract Delays: Major brokerages, including KB Securities, have lowered their target prices for Hyundai E&C, citing delays in signing contracts for U.S. Small Modular Reactor (SMR) and large-scale nuclear power projects. However, investment momentum in the nuclear sector is expected to recover starting in the second half.

• Burden of Rising Cost of Equity: KB Securities has expressed concerns that the rise in Hyundai E&C’s cost of equity will persist throughout the second half, noting that higher financial costs could constrain profitability despite improvements in operational performance.

• Strengthened Startup Cooperation: Through the "2026 Hyundai E&C x Seoul Startup Open Innovation" competition, co-hosted with the Seoul Business Agency, the company has selected 12 innovative AI and robotics startups. These companies will conduct field tests over the next four months.

2 sources

wikileaks-kr.org

상반기 7.6조 수주한 현대건설, 하반기 2조 얹고 시작하나 - 위키리크스한국

getnews.co.kr

현대건설, 혁신 스타트업과 함께 미래 건설 경쟁력 키운다

Guarantee Risks and Subcontractor Issues

According to currently available data, there are no confirmed reports regarding specific recent payment delays, construction cost disputes, or new issues related to guarantee insurance as of mid-2026. However, it is noted that discussions regarding mutual growth agreements between construction firms and subcontractors took place between May and June due to cost increases caused by the war in the Middle East.

• Supporting Subcontractors Amid Rising Costs: In response to surging costs caused by the Middle East conflict, 19 major construction firms (including Hyundai E&C) signed agreements to adjust supply unit prices with subcontractors. Currently, however, the adjustment cycles have not yet fully reflected the cost increases.

Market Analysis and Practical Insights

• Competitive Edge in Urban Renewal: Hyundai E&C’s first-half lead in urban renewal orders is likely to continue into the second half. The company is focusing on stabilizing its project portfolio by pushing for private contracts through expanded sole bidding during this period of intense competition.

• Strengthening Competitiveness via Tech Innovation: The strategy to preemptively secure future construction technologies, such as AI and robotics, through startup collaborations is a key differentiator. When applied on-site, these technologies are expected to improve construction efficiency and cost competitiveness.

Note: This material is based on media reports and public disclosures released between July 24 and 25, 2026. Please remain mindful of macroeconomic risks, such as real estate market volatility and potential further delays in nuclear contracts. Continued monitoring of subcontracting disputes and guarantee risks is recommended.