POSCO E&C Strengthens Remodeling Business as Earnings Return to Profit

POSCO E&C is solidifying its presence in South Korea's apartment remodeling sector, bolstered by a robust project portfolio and enhanced profitability. Since venturing into remodeling in 2014, the firm has secured deals amounting to roughly 14.3 trillion won across 46 apartment complexes, with recent orders totaling 5.4 trillion won alone.

This growth is driven by the rising preference for remodeling aging apartment complexes, especially in regions with high floor-area ratios that hinder full reconstruction. Remodeling differs from traditional redevelopment as it preserves much of the original structure while upgrading space, parking, and structural performance.

The company's remodeling expertise is underpinned by its experience with major projects and its adoption of cutting-edge technologies like 3D laser scanning and Building Information Modeling (BIM). These tools enable precise analysis of existing structures prior to construction, while specialized methods for underground parking expansion and structural reinforcement allow operations in tight spaces beneath existing complexes.

As more aging residential complexes in Seoul and surrounding areas explore remodeling over full reconstruction, POSCO E&C's expanded remodeling portfolio gains strategic importance.

Simultaneously, POSCO E&C's earnings are rebounding. The company reported a consolidated revenue of about 3.45 trillion won in the first half of 2026, a 6.3% decrease from the previous year. However, operating profit reached 97.4 billion won, reversing a 66.9 billion won loss in the same period last year. Net income also turned positive at 52.8 billion won, up from a 85.1 billion won loss a year prior.

The recovery is linked to improved cost management in building operations, signaling POSCO E&C's focus on profitability and strategic project selection over mere revenue growth.

Technology plays a crucial role in the company's remodeling strategy. Advanced techniques such as 3D scanning and BIM allow engineers to create detailed digital models of existing buildings before construction starts, ensuring compatibility with existing columns, walls, and foundations. Additionally, the company is integrating AI, drones, and other digital construction technologies to enhance site management, accuracy, and safety across its projects.

POSCO E&C aims to convert its substantial remodeling orders into a sustainable business model while maintaining the earnings recovery observed in the first half of 2026.