DOOSAN TESNA (131970) Q1 2025 earnings summary

Executive summary

• 1Q25 consolidated sales and operating profit declined year-over-year, mainly due to weaker performance from major affiliates Doosan Enerbility and Bobcat; net income improved sequentially but fell year-over-year.

• In-house business saw sharp year-over-year growth in sales and operating profit, driven by high-margin AI-related products in Electro-Materials.

Financial highlights

• Consolidated sales: KRW 4,299bn, down 3.7% YoY and 17.3% QoQ; operating profit: KRW 199bn, down 42.9% YoY and 5.0% QoQ.

• Net income: KRW 11bn, a turnaround from previous quarter but down from KRW 226bn YoY.

• Parent company sales: KRW 393bn, up 75.0% YoY and 17.5% QoQ; operating profit: KRW 95bn, up 260.7% YoY.

• Net debt and L/E ratio increased due to higher working capital needs.

Outlook and guidance

• Doosan Enerbility expects to achieve annual sales targets with improved project mix in 2H25, despite temporary 1Q sales and OP decline.

• In-house business anticipates continued YoY sales improvement in 1H25, supported by ongoing product mix upgrades.

• Electro-Materials projects record-high performance in 2Q25, focusing on high-end products for AI datacenters and memory markets.