DL 2026 Q1 Operating Profit Up, But Manufacturing Sector Remains Weak

Consolidated revenue KRW 1.2828 trillion (down 7.5% YoY), operating profit KRW 112.9 billion (up 7.1%), net profit KRW 12.1 billion (swung to black)
Manufacturing segment revenue KRW 1.0947 trillion (down 10.3% YoY) due to weak global demand and China capacity additions; auto parts up 32.6%
Construction segment (DL E&C) revenue KRW 1.7252 trillion (down 4.6% YoY) but operating profit KRW 157.4 billion (up 94.3% YoY) on improved profitability
Investment & other segment revenue KRW 92.6 billion (up 36.4% YoY) driven by higher dividend income
Dividend policy: maintain cash dividend at 40% of stand-alone net profit (no year-end dividend for FY2025)
Litigation risk: 11 major lawsuits ongoing (total over KRW 560 billion), collateral of KRW 2.6 trillion, guarantees and other contingent liabilities

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