Doosan Enerbility (034020) Q1 2025 earnings summary

Executive summary

• Consolidated Q1 2025 sales reached KRW 3,748.6 billion, with an operating profit of KRW 142.5 billion and a net loss of KRW 21.2 billion attributable to owners.

• Orders surged 173.8% year-over-year in 1Q25, driven by major gas power projects in the Middle East, but sales and EBIT declined due to the completion of large coal and water projects and upfront costs during project settlement.

• Segment performance: Doosan Bobcat led with KRW 2,098.2 billion in sales and KRW 200.0 billion in operating profit; Doosan Enerbility posted KRW 1,538.7 billion in sales but a slight operating loss; Doosan Fuel Cell recorded KRW 99.7 billion in sales and an operating loss.

• Gross margin for Q1 2025 was 15.9%, down from 18.2% in Q1 2024.

• Consolidated sales and EBIT decreased year-over-year, with a temporary net loss attributed to product mix transition and seasonal factors; improvement is expected in the second half as high-profit business grows.

Financial highlights

• Total assets at Q1-end: KRW 26,897 billion; total liabilities: KRW 15,154 billion; equity: KRW 11,743 billion.

• Debt-to-equity ratio increased to 1.29 from 1.26 at year-end 2024.

• Cash and cash equivalents at Q1-end: KRW 2,610 billion, down from KRW 2,898 billion at year-end.

• Net cash used in operating activities: KRW -572.0 billion; net cash from financing: KRW 420.5 billion.

• Net debt increased to KRW 3,571 billion (consolidated) in 1Q25.

Outlook and guidance

• Continued focus on expanding power plant EPC, nuclear, and hydrogen businesses.

• Ongoing investments in SMR, hydrogen, and green energy; capex plans for 2025–2027 total over KRW 1.3 trillion.

• Annual sales guidance for FY25 is expected to be met, with 92% of the KRW 6.5 trillion sales plan secured from backlog at end-2024.

• EBIT is forecast to improve in 2H25 as the business mix shifts toward higher-margin nuclear and gas projects.

• 2025 guidance: Orders KRW 10.7 trillion, sales KRW 6.5 trillion, EBIT KRW 373 billion (5.8% margin); 2029 guidance: Orders KRW 13.5 trillion, sales KRW 11.3 trillion, EBIT KRW 1,008 billion (8.9% margin).