Doosan Fuel Cell (A336260) Q3 2024 earnings summary

Executive summary

• 3Q24 sales reached 32 billion KRW, with an operating loss of 2.3 billion KRW due to the absence of PPLT delivery, resulting in a YoY sales decline of 29.7%.

• Revenue for the first nine months of 2024 was ₩150.2 billion, down from ₩260.9 billion year-over-year, with operating profit of ₩0.8 billion and a net loss of ₩4.2 billion.

• The company’s main business is supplying fuel cell equipment and long-term maintenance services, with a 53% domestic market share in cumulative installed capacity.

• Expansion into new business areas includes SOFC technology and hydrogen-powered commercial vehicles, with significant investments in production facilities.

• 2023 CHPS bidding project expected to drive a significant rebound in sales from 4Q24.

Financial highlights

• 3Q24 revenue was 32 billion KRW, down 29.7% YoY and 63% sequentially; operating loss was 2.3 billion KRW.

• Revenue decreased 42.4% year-over-year to ₩150.2 billion for the first three quarters of 2024.

• Gross profit for 3Q24 was 6.0 billion KRW, down 40.2% YoY and 48.5% QoQ.

• EBITDA for 3Q24 was 2.4 billion KRW, a 50.7% YoY and 67.3% QoQ decrease.

• Net loss expanded to 2.8 billion KRW in 3Q24; net loss for the first nine months was ₩4.2 billion.

Outlook and guidance

• 2023 CHPS project sales to be fully recognized from 4Q24, supporting a strong rebound in annual revenue.

• 2024 CHPS bidding secured 127MW (73% market share), expected to be reflected in 2025–2026 sales.

• Annual order forecast for 2024 is 70MW+α, with further order recognition expected in 2025.

• The company expects continued growth in the hydrogen economy and fuel cell market, driven by government policy and the Clean Hydrogen Portfolio Standard (CHPS).

• Ongoing investments in SOFC production and hydrogen mobility are expected to support future revenue streams.