IPARK Hyundai Development posts strongest profit in five years

IPARK Hyundai Development Co., the builder behind the IPARK apartment brand, posted its strongest quarterly operating profit in five years, as higher-margin housing projects lifted earnings despite elevated construction costs.

The company said Monday that consolidated operating profit reached 122.7 billion won ($89.4 million) in the second quarter, up 52.9 percent from a year earlier and 53.1 percent from the previous quarter.

Revenue rose 35.7 percent on-quarter to 914.6 billion won, while net profit climbed 69.8 percent to 83.7 billion won.

Its operating margin improved to 13.4 percent from 11.9 percent in the first quarter, marking a second consecutive quarter of double-digit profitability. Operating profit exceeded 100 billion won for the first time since the second quarter of 2021.

Growth was led by outsourced housing projects, including Cheonan IPARK City and Paju Unjeong IPARK Forest. The segment’s first-half margin rose to 16.4 percent, up 8.5 percentage points from 7.9 percent a year earlier, reflecting contracts secured at higher prices amid rising construction costs.

The company’s own-development business also supported earnings, led by SeoulOne IPARK in northeastern Seoul, Gagyeong IPARK in Cheongju and Central IPARK in Seosan.

“Improved cost ratios and a business portfolio centered on major own-development and outsourced projects drove the increase in profit,” a company official said.

The official added that SeoulOne IPARK and large projects in Cheonan and Paju’s Unjeong district are expected to support earnings in the second half.

Stronger cash flow helped the company reduce net debt by 300 billion won to about 800 billion won. Project-financing contingent liabilities fell 33.4 percent to 1.29 trillion won from 1.93 trillion won at the end of 2025.

IPARK Hyundai Development Co. also plans to repurchase and cancel 1.5 million treasury shares worth about 30 billion won as part of its shareholder-return policy.