Doosan Skoda Power s.r.o (DSPW) Q2 2025 earnings summary

Executive summary

• Consolidated revenues for 1H 2025 reached CZK 2.61 billion, a 2.3% increase year-over-year, with a similar revenue stream structure as 1H 2024.

• Major revenue contributions came from projects in Poland, Botswana, Saudi Arabia, Finland, Denmark, and the US, with the utility, mining, and refinery sectors leading.

• The company operates globally, with 43% of revenues from Europe (excluding Czech Republic), 18% from Asia, and 17% from Africa; Africa and Europe (excl. Czech Republic) saw significant growth.

• The long-term service agreement segment grew to 30 active contracts, up by 5 year-over-year.

• The company successfully listed on the Prague Stock Exchange in February 2025, raising share capital and increasing public float to 33%.

Financial highlights

• EBITDA for 1H 2025 was CZK 258 million, down from CZK 272 million in 1H 2024, mainly due to extraordinary IPO-related expenses and higher post-IPO operating costs.

• Net income decreased to CZK 208 million from CZK 258 million year-over-year, impacted by lower interest income following loan repayments and lower market rates.

• Operating profit rose to CZK 198 million in 1H 2025 from CZK 160 million in 1H 2024.

• Order backlog declined by 20% to CZK 8.17 billion due to successful project completions and lower order intake.

• Free cash flow was negative at CZK -520 million in 1H 2025, reflecting working capital changes and investments.

Outlook and guidance

• Management expects improved operating results for 2025 compared to 2024, with a significant increase in new orders anticipated.

• Secured a significant public tender for generator replacement at Temelín nuclear power plant in 3Q 2025, expected to positively impact 2H 2025 order intake and year-end backlog.

• Key opportunities identified in the Czech nuclear sector and energy conversion projects, with continued focus on international markets.

• Inflation pressures persist, especially on labor costs, and currency volatility (USD/CZK) remains a risk.