Doosan Enerbility (034020.KS) Q1 2026: ₩27.2T Backlog Builds as Core Margin Stalls at 3.04%
Order book gains validate the AI-power and gas-turbine thesis, but the parent's operating margin still trails Doosan Bobcat by three-to-one.
Source: Q1 Report (64th Fiscal Period) — Filed May 14, 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
Are data-center and AI power demand, together with the gas-turbine and SMR order momentum, actually pulling the parent's margin higher? The 64th-period Q1 report filed with DART on May 14, 2026 delivers an unambiguous verdict: the top line has recovered, but core-business profitability has not. Consolidated revenue reached ₩4,261.1 billion (+13.7% YoY) and operating profit ₩233.5 billion (+63.9% YoY), yet within the pre-consolidation segment operating profit of ₩262.8 billion, the parent Doosan Enerbility's contribution was just 21.68%. Over the same quarter, the order backlog climbed to ₩27,240.9 billion, a ₩1,738.4 billion increase from year-end (₩25,502.5 billion), pushing forward revenue visibility on the parent business to roughly 3.2× annual sales. This report is based on the consolidated financials for the reporting period January 1, 2026 to March 31, 2026.
Balance Sheet
Asset Mix — Working Capital Drove the Quarter's Growth
| Item | Prior (Dec 31, 2025, ₩ bn) | Current (Mar 31, 2026, ₩ bn) | Change |
|---|---|---|---|
| Cash and cash equivalents | 3,081.0 | 3,090.5 | +0.3% |
| Trade receivables | 1,616.7 | 1,816.0 | +12.3% |
| Unbilled receivables (contract assets) | 1,713.7 | 1,980.7 | +15.6% |
| Inventories | 2,544.0 | 2,828.2 | +11.2% |
| Property, plant and equipment | 5,776.6 | 5,822.5 | +0.8% |
| Intangible assets | 8,723.6 | 8,986.0 | +3.0% |
| Total assets | 27,513.2 | 28,695.1 | +4.3% |
Total assets expanded by ₩1,181.8 billion (+4.3%) in a single quarter, and the bulk of that growth lodged in the working-capital trio. Trade receivables (+₩199.3 bn), unbilled construction receivables (+₩267.0 bn), and inventories (+₩284.2 bn) together absorbed ₩750.5 billion. Percentage-of-completion accounting makes a growing unbilled balance structurally inevitable in EPC and equipment businesses, but the fact that the growth rate of unbilled receivables (+15.6%) outran the revenue growth rate (+13.7%) means cash collection on the book of business is lagging revenue recognition.
Intangible assets of ₩8,986.0 billion now account for 31.3% of total assets — the single largest line item on the balance sheet, and 5.2× retained earnings of ₩1,713.6 billion. Goodwill and customer relationships recognized when Doosan Bobcat was consolidated form the backbone of this number, and that exposure makes North American and European construction-equipment demand the single largest latent variable for group equity. Any meaningful weakening would force an impairment test whose result could flow straight through to capital. Assets held for sale of ₩84.2 billion appear as a new classification, reflecting residual disposals following the divestiture of the Vietnamese water subsidiary (Doosan Enerbility Vietnam).
Debt Structure — Shortening Maturities Are the Real Change
| Liability Item | Prior (₩ bn) | Current (₩ bn) | Change |
|---|---|---|---|
| Financial liabilities | |||
| Short-term borrowings | 1,883.6 | 2,579.3 | +36.9% |
| Current portion of long-term debt | 1,029.8 | 1,477.0 | +43.4% |
| Bonds (non-current) | 499.1 | 438.5 | -12.1% |
| Long-term borrowings | 2,336.1 | 2,060.9 | -11.8% |
| Financial liabilities subtotal | 5,748.6 | 6,555.7 | +14.0% |
| Operating liabilities | |||
| Trade payables | 3,183.1 | 2,957.2 | -7.1% |
| Contract liabilities (advances) | 1,577.9 | 1,684.6 | +6.8% |
| Accrued expenses | 1,229.6 | 1,019.2 | -17.1% |
The decisive change in the liability mix is not the headline +14.0% in total financial debt but the shortening of the maturity profile. Non-current bonds (-12.1%) and long-term borrowings (-11.8%) gave way to short-term borrowings (+36.9%) and the current portion of long-term debt (+43.4%). Aggregate financial liabilities maturing within twelve months now stand at ₩4,056.3 billion (short-term ₩2,579.3 bn + current portion of long-term ₩1,477.0 bn), exceeding the cash balance of ₩3,090.5 billion by ₩965.8 billion.
This shift is no accident. Of the ₩666.1 billion net cash provided by financing activities in the quarter, net additions to short-term borrowings supplied ₩685.2 billion — essentially the entire figure — while new long-term borrowings contributed only ₩160.0 billion. A year earlier, long-term borrowings added ₩619.3 billion, so the center of gravity of the company's funding has migrated from long-dated to short-dated debt. Working-capital deficits, in effect, are being plugged with short-term lines. Quarterly interest expense fell to ₩81.2 billion from ₩104.2 billion a year earlier, but that signal must be read together with the changing maturity mix and short-rate environment, not as a standalone gain.
Trade payables declined 7.1%, indicating either accelerated supplier payments or a smaller outsourced cost base, and that contraction added to the working-capital drain.
Capital Quality — OCI and Minority Interest Did the Lifting
| Equity Item | Prior (₩ bn) | Current (₩ bn) | Change |
|---|---|---|---|
| Paid-in capital | 3,267.3 | 3,267.3 | 0.0% |
| Additional paid-in capital | 1,441.6 | 1,441.0 | -0.0% |
| Other capital items | 45.5 | 84.7 | +86.2% |
| Accumulated other comprehensive income | 1,335.0 | 1,526.3 | +14.3% |
| Retained earnings | 1,696.3 | 1,713.6 | +1.0% |
| Owners of the parent | 7,785.7 | 8,033.0 | +3.2% |
| Non-controlling interests | 4,223.6 | 4,410.6 | +4.4% |
| Total equity | 12,009.4 | 12,443.6 | +3.6% |
Of the ₩434.2 billion equity increase, 87% came from accumulated other comprehensive income (+₩191.3 bn) and non-controlling interests (+₩187.0 bn). The statement of changes in equity shows foreign-currency translation gains of ₩285.1 billion in the quarter (₩133.2 bn to owners of the parent, ₩151.9 bn to minority interests), arising from translating Doosan Bobcat's U.S. subsidiary assets back into won. This is currency-translation OCI, not earnings the operating business retained.
Retained earnings rose by only ₩17.3 billion. Of the ₩60.2 billion quarterly net income, just ₩0.758 billion was attributable to owners of the parent against ₩59.468 billion to minority interests — a 78× gap. Even accounting for the ₩24.8 billion dividend paid by a subsidiary that reduced retained earnings, the share of earnings that flowed to parent shareholders was effectively zero. The relatively low ratio of additional paid-in capital (₩1,441.0 bn) to par-value paid-in capital (₩3,267.3 bn = shares × face value) reflects an equity base built largely on par rather than premium.
Income Statement
Core Metrics — Asymmetric Recovery Between Revenue and Profit
| Item | Q1 2025 (₩ bn) | Q1 2026 (₩ bn) | YoY |
|---|---|---|---|
| Revenue | 3,748.6 | 4,261.1 | +13.7% |
| Cost of sales | 3,150.9 | 3,517.0 | +11.6% |
| Gross profit | 597.7 | 744.1 | +24.5% |
| Gross margin | 15.94% | 17.46% | +1.52%p |
| SG&A | 455.2 | 510.6 | +12.2% |
| Operating profit | 142.5 | 233.5 | +63.9% |
| Operating margin | 3.80% | 5.48% | +1.68%p |
| Net financial income/(expense) | -79.4 | -110.6 | -31.2 |
| Net income (loss) | -21.2 | 60.2 | Turn to profit |
Operating profit jumped +63.9% on +13.7% revenue growth, driven by a 1.52 percentage-point expansion in gross margin and SG&A growth (+12.2%) that came in below revenue growth. The implied degree of operating leverage is approximately 4.7×, meaning every 1% of revenue growth translated into 4.7% operating-profit growth. The substance of that leverage, however, lies less in a margin normalization at the parent business than in pricing actions at Doosan Bobcat (Compact Equipment +3.4%, Portable Power +16.4%, Material Handling +2.5%).
The return to net profit was real, but its composition is uneven. Financial income (₩536.2 bn vs ₩269.1 bn) and financial expense (₩646.8 bn vs ₩348.6 bn) both nearly doubled, reflecting large two-way effects from foreign-currency translation and derivative remeasurement. Net financial expense widened by ₩31.2 billion to ₩110.6 billion, but a ₩13.8 billion gain on equity-method investments and an improvement in other non-operating items (-₩17.2 bn vs -₩34.7 bn) provided partial offsets. The result was that profit before income tax expanded roughly fourfold, from ₩30.2 billion to ₩119.5 billion, which became the pillar of the swing to profit.
Basic EPS of ₩1 (versus -₩108 a year earlier) restores the face-value floor, but a meaningful recovery in EPS attributable to owners of the parent will require the operating performance of the parent business to do the work.
Segment Mix — The Dependency, Quantified
| Segment | Net revenue (₩ bn) | Share | Operating profit (₩ bn) | Segment margin |
|---|---|---|---|---|
| Doosan Enerbility (parent) | 1,872.8 | 43.95% | 57.0 | 3.04% |
| Doosan Bobcat | 2,247.2 | 52.74% | 207.0 | 9.21% |
| Doosan Fuel Cell | 128.4 | 3.01% | -1.3 | -1.01% |
| Other (Doosan Cuvex, etc.) | 12.8 | 0.30% | 0.1 | 0.78% |
| Segment total | 4,261.2 | 100.00% | 262.8 | 6.17% |
| Consolidation adjustments | — | — | -29.3 | — |
| Consolidated total | 4,261.1 | — | 233.5 | 5.48% |
The parent business posted revenue of ₩1,872.8 billion and operating profit of ₩57.0 billion, for a segment margin of 3.04%. The full-year FY2025 parent margin was 3.88% (operating profit ₩302.3 bn on net revenue ₩7,788.9 bn), and FY2024 was 3.34% (₩243.6 bn on ₩7,292.8 bn). Seasonality pulls first-quarter margins lower because year-end revenues concentrate the cost recovery, but the parent business remains a long way from a double-digit margin. The threshold for the parent to stand shoulder-to-shoulder with Doosan Bobcat in group profit terms sits at roughly a 5% parent-segment operating margin — that is where margin normalization can be said to begin.
Doosan Bobcat carries more revenue than the parent and delivers three times the margin. Its 78.75% share of pre-consolidation segment operating profit is nearly identical to the FY2025 full-year share of 77.99%, confirming that the dependency on the subsidiary is structural, not cyclical. Doosan Fuel Cell narrowed quarterly operating losses to just ₩1.3 billion from the FY2025 full-year loss of ₩105.7 billion, consistent with the start of SOFC mass production in the second half of 2025 beginning to contribute revenue and pulling losses sharply lower.
Revenue Composition — 79% Exports, with the Parent Business at 64% Overseas
| Segment | Exports (₩ bn) | Domestic (₩ bn) | Export share |
|---|---|---|---|
| Doosan Enerbility | 1,207.9 | 664.9 | 64.5% |
| Doosan Bobcat | 2,154.6 | 92.6 | 95.9% |
| Doosan Fuel Cell | 2.4 | 126.0 | 1.9% |
| Consolidated total | 3,366.0 | 895.1 | 79.0% |
Seventy-nine percent of group revenue is generated abroad. Doosan Bobcat books 95.9% of its sales overseas, predominantly in North America and Europe, while the parent's own export share of 64.5% means that overseas EPC and equipment orders supply more than half of its quarterly top line. The won–dollar exchange rate is the single largest macro variable for group earnings. The simultaneous spike in financial income (₩536.2 bn from ₩269.1 bn) and financial expense (₩646.8 bn from ₩348.6 bn) in Q1, alongside the ₩285.1 billion OCI gain on foreign-currency translation, are all products of the same FX move.
Cash Flow — Working Capital Is Eating the Earnings
| Item | Q1 2025 (₩ bn) | Q1 2026 (₩ bn) | Change |
|---|---|---|---|
| Cash flow from operations | -572.0 | -565.5 | +6.5 |
| Cash generated from operations | -432.4 | -467.2 | -34.8 |
| Net income (loss) | -21.2 | 60.2 | +81.4 |
| Adjustments | 361.5 | 434.5 | +73.0 |
| Change in working capital | -772.7 | -962.0 | -189.3 |
| Interest paid | -104.2 | -81.2 | +23.0 |
| Income tax paid | -53.8 | -33.7 | +20.1 |
| Cash flow from investing | -150.2 | -170.8 | -20.6 |
| Acquisition of PP&E | -89.8 | -115.1 | -25.3 |
| Acquisition of intangibles | -41.6 | -56.3 | -14.7 |
| Cash flow from financing | +420.5 | +666.1 | +245.6 |
| Net change in short-term debt | +209.5 | +685.2 | +475.7 |
| Long-term borrowings drawn | +619.3 | +160.0 | -459.3 |
| Effect of FX changes | +13.0 | +88.0 | +75.0 |
| Net change in cash | -288.6 | +9.5 | +298.1 |
| Ending cash | 2,609.7 | 3,090.5 | +480.8 |
Operating cash flow of -₩565.5 billion is 9.4× negative relative to the ₩60.2 billion of quarterly net income. When the quality-of-earnings ratio (operating cash flow / net income) goes negative, the gap between accrual earnings and cash collection has stretched to an extreme. The core driver is the ₩962.0 billion swing in working capital, where receivables, unbilled construction receivables, and inventories rose simultaneously while payables shrank. The same pattern repeated a year earlier (Q1 2025: operating cash flow -₩572.0 billion; working-capital change -₩772.7 billion), suggesting that as the power-equipment order cycle expands, working capital is expanding in lockstep — though Q1 seasonality belongs in the same picture.
Free cash flow (operating cash flow minus PP&E and intangible additions) lands at (-₩565.5) - ₩171.4 = -₩736.9 billion, deeply negative. CapEx as a percentage of revenue ran at 4.0% in the quarter, with new builds in SMR, gas-turbine, and wind capacity setting CapEx on a rising trajectory.
The composition of the +₩666.1 billion financing inflow differs qualitatively from a year ago. In Q1 2025, long-term borrowings of ₩619.3 billion and a subsidiary's ₩149.7 billion rights issue carried the financing line; in Q1 2026, the +₩685.2 billion in net short-term borrowings did virtually all of the work. Funding an expansion phase predominantly with short-term debt is a vulnerability if either the rate environment or the refinancing market tightens. A ₩88.0 billion FX-translation tailwind (versus ₩13.0 bn a year earlier) lifted the ending cash balance to ₩3,090.5 billion, a marginal ₩9.5 billion increase from the start of the quarter.
Key Findings — Backlog and Industry KPIs
Backlog of ₩27.2 Trillion — The Parent's ₩25.1 Trillion Underwrites Revenue Visibility
| Segment | Opening backlog (₩ bn) | Revenue booked | Period change* | Closing backlog |
|---|---|---|---|---|
| Doosan Enerbility (incl. Czech Dukovany 5,6 NSSS) | 23,393.1 | 3,663.5 | 1,923.3 | 25,133.3 |
| Doosan Fuel Cell (incl. consigned O&M services) | 1,880.7 | 11.8 | 23.3 | 1,869.2 |
| Doosan Bobcat (incl. extended warranties) | 228.7 | 24.1 | 14.4 | 238.4 |
| Total | 25,502.5 | 3,699.4 | 1,961.0 | 27,240.9 |
*Period change = new orders during the period plus other adjustments (cancellations, modifications, etc.), per the PDF footnote.
Backlog is the headline KPI for the parent business. The parent segment's closing backlog of ₩25,133.3 billion equals roughly 13.4× quarterly parent revenue (₩1,872.8 bn) and 3.2× the FY2025 full-year parent revenue (₩7,788.9 bn). The parent's period change of ₩1,923.3 billion came in at about half the ₩3,663.5 billion booked into revenue, meaning that, in the near term, backlog is converting into revenue faster than new orders are arriving. As the report itself flags "Czech Dukovany 5,6 NSSS" as a discrete backlog line, the pace at which Czech nuclear awards start landing in backlog will determine whether order intake outruns revenue recognition in subsequent quarters.
Gas Turbines: 22 Units, 9.8 GW Cumulative — U.S. Crossing 12 Units Matters
The report specifies that domestically developed large gas turbines were ordered at the rate of 1 unit in 2023, 4 in 2024, 2 in Korea and 5 in the U.S. in 2025, and an additional 3 domestic and 7 U.S. units in Q1 2026 — bringing cumulative orders to 22 units and total supplied capacity to 9.8 GW. The shift in the U.S. share to 12 units (55% of the cumulative total) is the meaningful development. The report's own language — "these can connect to long-term, high-margin service business" — captures the essence of the gas-turbine business: every unit delivered is the starting line for a 20–30 year LTSA (long-term service agreement) revenue stream.
Gas-turbine market share is 53.4% domestically and 2.1% overseas. The overseas figure leaves the largest room for share gains, and the report explicitly identifies strengthened sales activity in the Middle East and Southeast Asia for 2026.
Nuclear and SMR — 100% Domestic, 3% Overseas, and the Czech Momentum
Domestic nuclear market share is 100%, overseas 3.0% (on a new-build basis over the past decade). Following Team Korea's award of the Czech new-build project, the company has signed equipment-supply contracts with KHNP. SMR work continues with NuScale material fabrication, and additional equipment-fabrication order activity is in progress. The fact that "Czech Dukovany 5,6 NSSS" appears as a discrete line in the backlog table confirms that nuclear awards are now a central pillar of three-to-five-year revenue visibility for the parent business.
Offshore Wind: 59.6% Domestic Share — Report Cites 793 MW of Confirmed Supply
The report explicitly cites the 2024–2025 fixed-price tenders won at Yawol (104 MW), Handong-Pyeongdae (110 MW), Dadaepo (99 MW), Aphae (90 MW), and the Jeonbuk Southwest demonstration complex (400 MW). The aggregated confirmed supply volume that the report itself discloses is 793 MW (small differences from the individual sum reflect the report's own rounding/aggregation convention). The company will also participate in turbine fabrication for the Anma Offshore Wind project (532 MW) in cooperation with Siemens Energy. Domestic offshore-wind market share of 59.6% indicates entrenched leadership.
Doosan Bobcat — Pricing Carries the Group Margin
Compact Equipment average prices rose +3.4% YoY, Portable Power +16.4%, and Material Handling +2.5%. Those increases drove the segment's 9.21% margin (operating profit ₩207.0 bn on net revenue ₩2,247.2 bn). The report itself notes that "the construction-equipment industry is characteristically highly cyclical with the economic environment." A slowdown in North American and European housing construction or a sharp shift in the rate environment would compress Doosan Bobcat's margin — the segment that supplies 78.75% of group segment operating profit — and that compression would, in turn, drive the impairment test for the ₩8,986.0 billion intangible-asset balance. That sequence is the single largest macro variable for group equity.
R&D — 2.45% of Revenue Across 275 Active Programs
R&D as a percentage of revenue ran at 2.45% in Q1 2026, 2.47% in FY2025, and 2.46% in FY2024 — essentially constant. The report identifies 275 active programs: 83 improvement/upgrade projects, 172 new-technology/new-product projects, and 20 future-business projects. The headline development tracks include the 300H S2 large gas turbine, mid-class hydrogen-fired gas-turbine demonstration, ultra-large PM-HIP and high-speed cladding for SMR, graphene coating for fuel-cell separators, and wind-blade recycling. The portfolio is concentrated in hydrogen, SMR, and recycling — the next-generation power and sustainability vectors.
Contingent Liabilities — Doosan E&C Loss-Compensation Agreement
The notes disclose that Doosan Enerbility has entered into a loss-compensation agreement covering any shortfall on the sale value of Doosan E&C shares held by The Zenith Holdings. Within the consolidated group, ₩11.7 billion has been recognized as derivative valuation assets and gains/losses in connection with the related put option. Movements in Doosan E&C's market value therefore carry a latent feedback effect into group earnings that warrants monitoring.
Outlook
What grew. Consolidated revenue rose 13.7% and operating profit 63.9%, and the top-line recovery is unambiguous. Gross margin expanded from 15.94% to 17.46%, and net income swung from -₩21.2 billion to +₩60.2 billion. Backlog reached ₩27,240.9 billion (parent ₩25,133.3 bn), a ₩1,738.4 billion increase from year-end. Gas-turbine orders now stand at 22 cumulative units and 9.8 GW; offshore wind has 793 MW of confirmed supply; nuclear holds 100% domestic share, 3% overseas, plus the Czech NSSS award. Revenue visibility on the parent business strengthened materially during the reporting period.
What is the risk. Operating cash flow of -₩565.5 billion follows -₩572.0 billion in the prior-year quarter — a ₩500 billion-class deficit at the same point of the year — and free cash flow runs at -₩736.9 billion. Short-term borrowings +36.9% and the current portion of long-term debt +43.4% lifted financial liabilities maturing within twelve months to ₩4,056.3 billion, ₩965.8 billion above the cash balance of ₩3,090.5 billion. The parent segment's operating margin of 3.04% means group dependency on Doosan Bobcat (which supplies 78.75% of segment operating profit) remains unresolved. The intangible-asset balance of ₩8,986.0 billion (31.3% of total assets) carries an impairment-test outcome that could shake group equity in the back half of the cycle. The Doosan E&C loss-compensation agreement remains an off-balance-sheet contingent exposure to monitor.
Capital allocation. The only capital-return line in Q1 was the ₩24.8 billion subsidiary dividend, with no share buybacks. CapEx of ₩171.4 billion (PP&E ₩115.1 bn + intangibles ₩56.3 bn) ran at 4.0% of revenue. On the financing side, ₩685.2 billion in net new short-term borrowings carried almost the entire weight of funding working capital — capital allocation priorities, in practice, are pinned to working-capital coverage and short-term refinancing.
Cycle positioning. The power-equipment parent business sits in the early-to-middle innings of the data-center/AI-power and nuclear order cycle. With backlog now at 3.2× annual parent revenue, the revenue cycle is clearly in expansion. But the parent segment margin of 3.04% shows that revenue expansion is not yet converting one-for-one into profit. At the subsidiary level, Doosan Bobcat's price increases are still landing, but North American interest-rate and housing-cycle risks coexist.
Conditional thesis. Three conditions, taken together, would mark a normalization of group earnings and balance-sheet structure: the parent segment's operating margin entering the 5%-range on a quarterly basis; operating cash flow turning positive; and short-term borrowings being refinanced into long-term debt. None of the three was confirmed in Q1 2026. That said, backlog accumulation, the U.S. gas-turbine penetration, and the SMR/Czech nuclear momentum are visibly building the revenue base required to reach that threshold.
Disclaimer
This report has been prepared for informational purposes based on Doosan Enerbility's 64th-period Q1 report disclosed via DART (filed May 14, 2026, covering the period January 1, 2026 to March 31, 2026) and does not constitute investment advice. Source: DART regulatory filing.
