Doosan Fuel Cell Rides U.S. Data Center Growth to Lift Capacity Utilization; Return to Profitability Expected in Second Half

[Financial News] Doosan Fuel Cell is rapidly raising its plant utilization rate as it expands orders for fuel cells for artificial intelligence (AI) data centers in the United States. With the domestic fuel-cell market remaining sluggish, expectations are growing for improved performance in the second half of the year as the company secures power demand from U.S. data centers as a new growth driver.
According to industry sources on the 16th, Doosan Fuel Cell's domestic plant utilization rate reached 86% in the first half of this year. That was 7 percentage points higher than the 79% annual utilization rate recorded last year. As large new orders are reflected in production, the rate is expected to exceed 90% in the second half.
The key driver of the increase is the U.S. data center market. As data center construction accelerates with the spread of AI, electricity demand in the United States is surging, along with demand for stable, dedicated power sources.
This month alone, Doosan Fuel Cell signed contracts worth a combined KRW 823.6 billion to supply phosphoric acid fuel cells (PAFCs) to its U.S. subsidiary HyAxiom. Under the arrangement, Doosan Fuel Cell will supply fuel cells to HyAxiom from the second half of this year through 2028, and HyAxiom will deliver them to data centers in the United States. Through its cooperation with HyAxiom, Doosan Fuel Cell is reportedly securing the capacity to complete fuel-cell installations within roughly one year after a contract is signed.
As a result, Doosan Fuel Cell's cumulative orders for this year have risen to approximately KRW 1.11 trillion. If additional orders continue in the U.S. data center market, the recovery in earnings is expected to accelerate further alongside higher utilization of its production facilities.
The market is also discussing the possibility of a quarterly return to profitability in the second half. Doosan Fuel Cell posted an operating loss of KRW 52.2 billion in the first half, but analysts say profitability could improve from the second half as new orders begin to be reflected fully in revenue.
[email protected] Jeong Won-il Reporter