1. H1 2025 Earnings Analysis: The Dilemma of Growth and Profitability
Doosan achieved remarkable revenue growth in H1 2025, reaching ₩5.35 trillion, surpassing market expectations by 14%. However, operating profit fell short, reaching ₩357.7 billion, a 24% decline compared to estimates. Net profit also decreased by 7% to ₩233.1 billion. This contrasting performance presents a key challenge for investors.
2. Fundamental Analysis: Solid Foundation, But Profitability Needs Attention
Doosan demonstrates positive fundamentals, including enhanced transparency in disclosures related to treasury stock. Financial indicators as of the end of 2024 show an increase in equity and a trend of improving profitability. However, the recent decline in profitability necessitates careful analysis and management.
3. Future Outlook: Macroeconomic Factors and New Growth Businesses are Key
Current macroeconomic indicators, including exchange rates, interest rates, and oil prices, may have a partially positive impact on Doosan. However, if the decline in profitability persists, maintaining growth momentum could be challenging. Doosan’s future hinges on effective profit management and the success of its new growth businesses, such as AI semiconductors, gas turbines, offshore wind power, and hydrogen.
4. Action Plan for Investors
- Analyze the causes of declining profitability: Carefully investigate the reasons behind the profit decline, including costs, selling, general and administrative expenses (SG&A), and one-time expenses.
- Assess H2 2025 earnings outlook: Evaluate the likelihood of continued profitability issues and the potential for improvement in the second half of the year.
- Monitor new growth businesses: Keep track of the progress and market competitiveness of Doosan’s new ventures.
- Keep an eye on macroeconomic factors: Continuously analyze the potential impact of macroeconomic variables, such as exchange rates, interest rates, and oil prices.