Doosan Fuel Cell (A336260) Q2 2024 earnings summary

Executive summary

• 2Q24 sales reached KRW 86.5 billion, with operating income of KRW 2.9 billion, reflecting a significant QoQ sales increase as PPLT deliveries began.

• Specializes in fuel cell technology for power generation, with a leading domestic market share and expanding into eco-friendly mobility and marine sectors.

• Recorded consolidated sales of 118.2 billion KRW and operating profit of 3.8 billion KRW for H1 2024.

• Acquired 100% of Hi Axiom Motors to enter the eco-friendly commercial vehicle market.

• Performance improvement expected in 2H24 as secured CHPS volume from 2023 is recognized as sales.

Financial highlights

• Revenue for 2Q24 was KRW 86.5 billion, up 173% QoQ and 75.9% YoY.

• H1 2024 consolidated revenue: 118.2 billion KRW, down from 260.9 billion KRW in H1 2023.

• Operating income for 2Q24 was KRW 2.9 billion (separate), with a margin of 3.3%; consolidated operating income was KRW 2.2 billion (2.5% margin).

• EBITDA for 2Q24 was KRW 7.3 billion (separate), with an 8.4% margin.

• Net income turned positive YoY, with 2Q24 consolidated net income at KRW 0.4 billion; H1 2024 net loss was 0.6 billion KRW.

Outlook and guidance

• Annual order volume expected to increase as 2023 secured volume and new orders are recognized in 2H24.

• Expects continued growth in hydrogen and fuel cell markets, driven by government policy and global decarbonization trends.

• Ongoing investments in SOFC (solid oxide fuel cell) production and new business lines in mobility and marine applications.

• Targeting at least 50% market share in the general H2 power generation market and entry into the clean H2 market.

• Performance improvement anticipated as more orders are converted to sales.