Doosan Enerbility (034020) Q4 2024 earnings summary

Executive summary

• Orders reached KRW7.1tn, exceeding plan due to gas turbine and CCPP EPC, despite no large nuclear projects.

• Revenue declined 3.7% year-over-year as large coal EPC projects ended, but EBIT margin improved from a better backlog mix.

• Net loss was mainly due to valuation loss on investments; excluding these, operations would have been profitable.

• Consolidated profit dropped year-over-year, impacted by external uncertainties and weaker Bobcat performance.

Financial highlights

• 2024 consolidated sales: KRW16.2tn, down 7.7% year-over-year; EBIT: KRW1,018bn, down from KRW1,467bn.

• 2024 managerial consolidated sales: KRW7.4tn, down 3.7% year-over-year; EBIT: KRW244bn, up from KRW225bn.

• Net income (consolidated): KRW395bn, down from KRW518bn year-over-year.

• Net debt (consolidated): KRW2,854bn, up from KRW2,024bn year-over-year.

• Liability/equity ratio (consolidated): 125.9%, slightly improved from 127.3% year-over-year.

Outlook and guidance

• 2025 order guidance: KRW10.7tn, up KRW3.6tn from 2024, driven by major nuclear projects like Czech nuclear.

• 2025 sales guidance: KRW6.5tn; 2029 sales target: KRW11.3tn (CAGR +15%).

• 2025 EBIT guidance: KRW373bn; 2029 EBIT target: KRW1,008bn (CAGR +28%).

• Strategic focus on nuclear and gas equipment to drive mid- to long-term growth and profitability.