WOOD Flash – Doosan Skoda Power: 3Q25 weak; 2025E guidance lowered; downside risk for our 2025E estimates
This morning (25 November), Doosan Škoda Power (DSP) released weak 3Q25 results, in our view. The EBITDA fell by 89% yoy, on higher opex and hedging losses, and the company reported a net loss in the quarter. The backlog rose by 59% qoq, driven by the Temelín generators contract (CZK 5bn) – which we believe is fully priced in – while other, newly-secured contracts totalled CZK 0.8bn, implying a book-to-bill of c.0.8x. Although no specific 2025E guidance was provided, DSP has lowered its 2025E revenue expectations, due to decision delays in several projects, and flagged higher 2025E opex, both of which are negative for profitability. We view the print negatively and we see downside risks for our 2025E estimates and the dividend proposal. Management noted some 4Q25E signings already; the size of these contracts will be key for assessing the company’s ability to meet its mid-term earnings guidance. On our (admittedly optimistic) 2025E numbers, the stock is trading at 20.8x P/E and 12.7x EV/EBITDA. We reiterate our SELL on the stock.
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