High-tech construction supports earnings growth
Samsung C&T's construction division is maintaining earnings growth led by high-tech businesses such as semiconductor production facilities, while developing small modular reactors (SMRs) and data centers as its next growth businesses. It is expanding into energy and digital infrastructure markets by drawing on the capabilities it has built in its established high-tech construction business.
According to Samsung C&T's consolidated third-quarter results for 2026, cited on November 4, revenue at the construction division rose 44.5% year on year to 4,465 billion won. Operating profit increased 149.5% over the same period to 277 billion won.
Building construction led the improvement in earnings. Revenue in the segment expanded as high-tech projects, including Pyeongtaek P5 FAB1 and FAB2, got fully under way and overseas building projects progressed. Third-quarter building construction revenue rose 54.7% year on year to 3,185 billion won.
By contrast, civil engineering revenue fell 19.3% year on year to 159 billion won. Plant revenue increased 34.4% to 1,121 billion won. With growth varying across business segments, building construction, including high-tech projects, led the construction division's revenue expansion.
Samsung C&T is expanding business opportunities in energy and digital infrastructure to establish a medium- to long-term growth base while maintaining its competitiveness in existing high-tech businesses, including semiconductor production facilities.
SMR partnerships and investment
SMRs are a leading area of this expansion. Samsung C&T is participating as a partner in a 1.2 GW SMR project led by Swedish nuclear company Studsvik. A joint development agreement (JDA) has been signed with GE Vernova-Hitachi for the project, which seeks to build 4 BWRX-300 reactors rated at 300 MW each.
The project is seen as an opportunity for Samsung C&T to expand in the next-generation nuclear market by drawing on its experience in building large nuclear power plants. Samsung C&T plans to participate from the early stages, cooperate on design and supply chain development, and apply its construction capabilities when full-scale construction begins.
The company has also invested in US SMR company Kairos Power. Samsung C&T has invested $70 million in Kairos Power and is pursuing a plan to increase its investment to as much as $100 million. Its goal is to participate in design and construction consulting for demonstration reactors and subsequently expand cooperation to EPC work for commercial SMR power plants in the United States.
Data center investment and business plans
Data centers are another new business attracting Samsung C&T's attention. Growth in the artificial intelligence (AI) industry is increasing demand for large-scale computing facilities and power and cooling infrastructure, expanding opportunities in the data center construction market.
Samsung C&T signed an agreement to invest $200 million in Helix Digital Infrastructure, established by private equity firm KKR. Building on this investment, it is pursuing participation in data center EPC projects using modular construction methods and envisages expanding its involvement to business development, engineering, procurement and construction (EPC), and operations and maintenance (O&M).
Hana Securities analyst Kim Seung-jun said: “With a substantial revenue increase expected in 2027 on the back of expanded investment by affiliates, Samsung C&T is preparing SMR and data center businesses to secure medium- to long-term sources of growth.”
A Samsung C&T representative said: “For data centers, we are still at the stage of assessing the revenue model.”
Original Korean article: youthdaily.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
