GS E&C: Weak Q1 Results Amid Maintained Dividend Policy; PF & Litigation Risks

[Earnings] Q1 consolidated revenue KRW 2.40tn (-21.6% YoY), operating profit KRW 73.5bn (+4.4%), net profit attributable to controlling interest KRW 0.6bn (vs KRW 93.5bn full year 2025, steep drop)
[Dividend] Policy to return at least 25% of controlling net income for 2025-2027 (maintained)
[PF Contingent Liabilities] Real estate PF credit enhancement balance KRW 3.25tn (solo 3.14tn, consortium 0.11tn) / SOC funding commitment limit KRW 3.11tn
[Litigation] 286 pending cases (203 as defendant, 83 as plaintiff), total claim amount KRW 3.58tn (company share KRW 2.09tn)
[Subsidiary Sale] GS Inima (water treatment) 100% stake sale to TAQA for $900mn ongoing (SPA signed, conditions precedent pending)
[Financials] Debt ratio 231%, cash & equivalents KRW 2.34tn, standalone operating loss KRW 8.9bn, net loss KRW 3.6bn
[Order Backlog] Year-end backlog KRW 72.1tn (domestic 47.2tn, overseas 24.9tn) / continuous large-scale redevelopment project wins
[Credit Rating] Unsecured bonds rated A0 (stable), financial covenants (debt ratio ≤330%, etc.) complied

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