1. What Happened? Earnings Decline and SMR News

Doosan Enerbility’s H1 2025 earnings saw a sharp decline in both revenue and operating profit compared to the same period last year. The main culprits are a weakening global economy and intensifying competition in the construction and power plant equipment market. However, reports (unconfirmed) of a potential SMR component supply contract with NuScale Power offer a glimmer of hope for future growth.

2. Why Did This Happen? Reasons for Decline and SMR Significance

Increasing global economic uncertainty, including a slowing global economy, fluctuating exchange rates and interest rates, and geopolitical risks, negatively impacted Doosan Enerbility’s performance. However, the SMR market, driven by global decarbonization efforts, holds significant growth potential. An SMR supply contract could be a crucial catalyst for Doosan Enerbility’s future growth.

3. What’s Next? Future Outlook for Doosan Enerbility

Beyond SMRs, Doosan Enerbility is investing in various sectors, including nuclear power, hydrogen/wind energy, and aircraft engine manufacturing, to diversify its business. If these efforts bear fruit, mid-to-long-term growth is anticipated. However, uncertainties surrounding the SMR project, high initial investment costs, and intensifying competition pose significant risks.

4. What Should Investors Do? Key Investment Points

  • SMR Project Progress: Closely monitor any updates regarding the project until the re-disclosure date (March 18, 2026).
  • Order Recovery: Pay close attention to Doosan Enerbility’s ability to secure new orders and expand its high-profit service business.
  • Subsidiary Performance (Doosan Bobcat, Doosan Fuel Cell): Monitor the performance and potential for earnings improvement of its subsidiaries.
  • Financial Health: Assess the company’s ability to manage its high debt-to-equity ratio and improve operating cash flow.
  • Macroeconomic Environment: Continuously monitor the impact of macroeconomic factors such as exchange rates, interest rates, and oil prices.