---
endpoint: analytics
pattern: Capital Goods
status: done
latency_ms: 184983
conversation_id: 5e2ee78d-e00f-4257-ab8f-9796a17cdab1
citations: 8
created: 2026-05-31 18:51:26Z
---

# What is Doosan Enerbility’s core business franchise and the key components of its operating model?

# Doosan Enerbility (034020 KS) — Core Business Franchise & Operating Model

Doosan Enerbility is the heavy-equipment flagship of the Doosan Group and Korea's only domestic OEM of large-scale nuclear and gas turbine power-generation equipment. It is a project-based, order-and-backlog-driven heavy capital-equipment franchise with a long-cycle, front-loaded working capital profile, operated through a managerial-consolidated structure that combines a parent equipment business with three reportable segments (Enerbility parent, Doosan Bobcat, Doosan Fuel Cell, Others).

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## 1. Reportable Segments (IFRS Consolidated)

Per the FY2025 consolidated audited financial statements, Doosan Enerbility reports under four business segments [1]:

| Segment | Main Products & Services |
|---|---|
| **Doosan Enerbility Co., Ltd. (parent)** | NSSS (Nuclear Steam Supply System), BOP (Balance of Plant), Turbines, Seawater desalination plants and water treatment systems, Plants, Road construction and others [1] |
| **Doosan Bobcat Inc.** | Small construction machinery and equipment, and others (includes Doosan Mottrol acquired by Bobcat in 2024) [1] |
| **Doosan Fuel Cell Co., Ltd.** | Power-generation fuel cells and long-term maintenance service (LTMS) businesses [1] |
| **Others** | Operation of resort and golf club, and others [1] |

The "Managerial Consolidated" presentation used in IR materials is defined as **IFRS parent + Overseas Subsidiaries results** — this is the most-referenced operating disclosure because it isolates the core heavy-equipment franchise from Bobcat's cyclically dominant earnings on a fully consolidated basis [2].

---

## 2. Core Equipment Franchise — Five Product Lines

Within the parent equipment business, orders and revenue are tracked across five product lines that define the franchise [3]:

| # | Order Category | Products/Services |
|---|---|---|
| 1 | **Nuclear** | NSSS, Steam Turbine Generator (STG), Plant Construction, Services, SMR [3] |
| 2 | **Gas/Hydrogen** | Gas turbine equipment, Gas turbine services, Combined STG [3] |
| 3 | **CCPP EPC** | Combined-Cycle Power Plant EPC / EP+C [3] |
| 4 | **Renewable** | Offshore wind power (equipment, EPC, services), Fuel cells, Hydropower [3] |
| 5 | **Others** | Civil engineering/construction, Casting and forging, Other services [3] |

### FY2025 Order Mix (Managerial Consolidated)

FY2025 orders reached **KRW 14.7tn (≈ 2× YoY)**, driven by Czech Nuclear, gas turbines, and CCPP EPC [2]. The composition reveals the company's strategic pivot toward Nuclear + Gas as the "Core Growth Businesses":

| Year | Nuclear | Gas/Hydrogen | CCPP EPC | Renewable | Others | Total | Growth Biz % |
|---|---|---|---|---|---|---|---|
| 2024 | 0.9 | 0.9 | 3.6 | 1.6 | 7.1* | 7.1 | 76% [8] |
| 2025 | 6.8 | 1.3 | 3.4 | 2.2 | 0.9 | 14.7 | 79% [8] |
| 2026(P) | 4.9 | 3.2 | 3.0 | 1.1 | 1.2 | 13.3 | 83% [8] |
| 2030(P) | 7.7 | 2.9 | 2.8 | 2.0 | 1.0 | 16.4 | 82% [8] |

*KRW tn; "Growth Business" = Nuclear + Gas + CCPP EPC + Renewable [8]

---

## 3. The Operating Model — How the Franchise Makes Money

### 3.1 Order → Backlog → Revenue Conversion (Long-Cycle)

Doosan operates a classic heavy-equipment project model: large multi-year contracts are won, booked into backlog, and then converted into revenue as plant construction, manufacturing, and commissioning milestones are met. **1Q26 backlog at the parent stood at KRW 24.1tn**, up 45.9% YoY, with KRW 2.8tn of new orders in the quarter alone [4]. Revenue conversion is back-loaded toward Nuclear (Shin-Hanul 3/4, Czech) ramp-ups and to high-margin gas turbine equipment/services as legacy thermal/coal EPC runs off [8].

### 3.2 Front-Loaded Working Capital

Management explicitly describes the business as **"inherently front-loaded, with significant cash outflows in early project phases and improvements toward year-end"** — a key structural feature explaining why net debt swung up to KRW 3.5tn in 1Q26 from KRW 2.7tn at end-2025 [13].

### 3.3 Revenue Mix by Product (1Q25 indicator)

Inside the parent's "high-growth" bucket (54% of 1Q25 revenue), per management: **Nuclear ≈ 30–40%, Steam Turbines ≈ 10%, Gas Turbines and SMRs still small but expected to scale meaningfully in 2H** [14]. **Nuclear services** (replacement, maintenance, emergency repair on operating nuclear plants) is a stable recurring stream worth **KRW 200–400bn annually** [14].

---

## 4. The Three Strategic Engines Driving the Franchise

### 4.1 Nuclear (Large-Scale + SMR) — the Core Anchor

- **Large-scale**: Team Korea-led Czech 2-unit contract (≈ KRW 26trn total, with **≈ KRW 3.8trn equipment portion for Doosan** [13]); pipeline includes UAE, Saudi Arabia, Korea i-SMR (2028) and the 11th Basic Power Plan units (2029) [11][17].
- **AP1000 (Westinghouse)**: Doosan participates in WEC's AP1000 program, with management framing potential coverage at "≈ 50% of WEC's planned volumes across North America and Europe" [under upside scenarios] in its FY25 mid-term plan.
- **SMR**: Doosan is positioned as the OEM/manufacturer for multiple Western SMR designers — **NuScale** (16-module reservation, Rumania 6 modules + US projects up to 12 modules), **TerraPower** (GV1, RSS contracts secured), **X-energy**, **Rolls-Royce SMR** (Wylfa 3-unit UK), **GE Vernova/Hitachi BWRX-300**, and **i-SMR** (domestic) [10][13]. **Changwon facility** currently sized for 12 SMR modules, with plans to expand to **20 units** [15].

### 4.2 Gas Turbines — the Optionality Story

Doosan is **Korea's only and world's fifth** developer of a 380MW-class heavy-duty gas turbine, with the **DGT-300H** having successfully completed Full Speed Full Load testing [7]. It is also expanding **non-OEM F-class core parts** (turbine, compressor, rotor) for the existing US-installed base of **~660 F-class units** [6]. Management is in discussions to supply ~10 gas turbines (≈ 8GW) to multiple US data center developers [10]; export pricing is more favorable than domestic and bundles in STGs and HRSGs [under Q12 Q&A in CLSA's 1Q25 review]. The key bottleneck is **precision casting components**, where Doosan partners with foundries in the US, Europe, Japan, and Korea to expand capacity [15].

### 4.3 CCPP EPC — the Cash Bridge

Combined-cycle EPC has been the highest absolute order contributor in 2024–2025 (3.4–3.6 tn/yr [8]) and is bridging revenue as legacy coal EPC phases out, supporting near-term sales while nuclear and gas turbine equipment ramp.

---

## 5. Capital Allocation & Financing Model

- **3-year (2025–27) investment plan**: ~KRW 1.3tn, with **+KRW 0.6tn incremental** vs the prior plan added specifically to expand large-nuclear, SMR, and gas-turbine capacity [7].
- **Doosan Škoda Power IPO** (Prague): planned divestiture of the Czech subsidiary's shares (~KRW 110bn proceeds) to fund growth-driver capex [7].
- **Mid-term financial guidance** [9]: 2030(P) Sales KRW 11.7tn (+58% vs 2026P), 2030(P) EBIT KRW 1,153bn (margin ~9.9%, +4.5pp vs 2026P), Avg orders 25–29P KRW 16.4tn (+23%).

---

## 6. Consolidated-Level Operating Picture (1Q26)

Total consolidated picture for Doosan Enerbility group [5]:

| Metric (KRW bn) | 1Q25 | 4Q25 | 1Q26 | YoY |
|---|---|---|---|---|
| Sales | 3,749 | 4,860 | 4,261 | +13.7% |
| EBIT | 143 | 212 | 234 | +63.9% |
| EBIT margin | 3.8% | 4.4% | 5.5% | +1.7pp |
| Net Income | -21 | 53 | 60 | +81 |
| Liability/Equity | 129.0% | 129.1% | 130.6% | — |

Sales were driven by Enerbility (parent equipment), Bobcat, and Fuel Cell — confirming the **multi-segment consolidation structure** at the listed entity level [5]. Bobcat alone generates >70% of its revenue in the US and remains the major earnings contributor on a consolidated basis [11].

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## 7. Investor Takeaways on the Model

- **Order book is the leading indicator** — the company's franchise value is measured in orders and backlog years before revenue is recognized; FY25's 2× YoY order step-up [2] is the bull case being priced in [9].
- **Quality of mix matters more than headline orders** — the strategic push toward 82–83% "Growth Business" mix by 2026–30P is explicitly framed as a margin-expansion lever as high-margin Nuclear/Gas displace lower-margin coal/CCPP-only EPC [8].
- **US gas turbines (data center demand)** are the most-watched 2025–26 catalyst; the first US order has been positioned as a high-conviction near-term event [9].
- **Risk profile**: Doosan Enerbility has a history of "unexpected rights issues and other restructurings" that have hurt minority shareholders, and any change in the nuclear power outlook could drive sharp share-price volatility [16][12].

---

**Sources**
[1] Doosan Enerbility Co., Ltd. — Annual Report FY2025 (Segment Information, Note 25) — period end 31-Dec-2025
[2] Doosan Enerbility — FY2025 Earnings Release and Business Outlook (Managerial Consolidated)
[3] Doosan Enerbility — FY2026 1Q Earnings Release (slides) — Order Categories footnotes
[4] Doosan Enerbility — FY2026 1Q Earnings Release (interim) — Orders/Backlog table
[5] Doosan Enerbility — FY2026 1Q Earnings Release (interim) — Consolidated Results Summary
[6] Doosan Enerbility — '25 2Q Earnings Release (Non-OEM F-class gas turbine commercial operation)
[7] Doosan Enerbility — '25 2Q Earnings Release (380MW DGT-300H performance test) / FY2024 Earnings Release (Investment Plan)
[8] Doosan Enerbility — FY2025 Earnings Release (Mix Forecast by Energy Sources — Orders 2024–2030P)
[9] Doosan Enerbility — FY2025 Earnings Release (2026 & Mid-term Guidance, Core Growth in Nuclear and GT)
[10] CLSA — Doosan Enerbility - HC O-PF (One step back for two steps forward), 2025-05-01 — SMR/GT outlook
[11] CLSA — Doosan Enerbility - HC O-PF (Sanity check), 2025-04-07 — Bobcat 70% US, no major US parent exposure
[12] CLSA — Doosan Enerbility - O-PF (Half nuclear half amazing), 2025-05-27 — Investment risks
[13] CLSA — Doosan Enerbility - O-PF (One step back…), Q&A — Czech KRW 3.8trn equipment portion, front-loaded working capital
[14] CLSA — Doosan Enerbility - O-PF (One step back…), Q&A — Nuclear services KRW 200–400bn, 1Q25 revenue mix
[15] CLSA — Doosan Enerbility - O-PF (One step back…), Q&A — SMR Changwon capacity, gas turbine casting bottleneck
[16] CLSA — Doosan Enerbility - O-PF (Half nuclear half amazing), 2025-05-27 — Rights issue/restructuring history
[17] CLSA — Doosan Enerbility - O-PF (Half nuclear half amazing), 2025-05-27 — 2025 order pipeline / SMR 12 modules + 6 long-lead

## Citations

- [1] **Doosan Enerbility Co., Ltd. (034020-KR) - Annual Report for period end 31-Dec-2025 (English) - PDF** · external
- [2] **Doosan Enerbility Co., Ltd., Q4 2025 Report** · external
- [3] **Doosan Enerbility Co., Ltd., Q1 2026** · external
- [4] **Doosan Enerbility Co., Ltd., Q1 2026 Report** · external
- [5] **Doosan Enerbility_'25 2Q Earnings Release_vf.pdf** · external
- [6] **Doosan Enerbility_'25 2Q Earnings Release_vf.pdf** · external
- [7] **Doosan Enerbility_'24 Earnings Release and Business Outlook_Eng.pdf** · external
- [8] **Doosan Enerbility Co., Ltd., Q4 2025 Report** · external

