KECC: Q1 turns profitable, dividend up, but debt & contingent liabilities weigh

Consolidated Q1 2026 revenue KRW 98.7bn (+14.4% YoY), operating profit KRW 4.0bn, net profit KRW 4.0bn (vs. net loss KRW 1.5bn in Q1 2025), EPS KRW 380 (consolidated, vs. -KRW 146)
Dividend: FY2025 final dividend of KRW 1.56bn (KRW 150 per share) paid, 50% increase YoY, steady dividend policy maintained
Financial soundness: Debt ratio 154.8% (up from 147.9% at year-end), net debt ratio 113.13% (up from 102.45%), new project finance borrowing of KRW 19.3bn
Operating cash flow -KRW 16.6bn (vs. +KRW 1.9bn in Q1 2025), impacted by increase in contract assets
Contingent liabilities: 13 pending lawsuits (total claims ~KRW 13bn), performance guarantee obligations for data center, golf course, hospital projects totaling KRW 258bn
New business: Subsidiary Myeongji 2 Energy (fuel cell power) established, participation in KRW 4.51bn rights offering, no revenue yet
Outlook: Expected to benefit from expanded government SOC budget and renewable energy policies

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