Doosan Bobcat's Q3 operating profit rises 25.3% on North American construction and rental demand

[Financial News] Doosan Bobcat increased its operating profit by at least 25% year-on-year in the third quarter of this year, buoyed by growing demand for equipment from the North American construction market and rental companies. As the recovery in the U.S. housing market remained delayed, demand in non-residential sectors, including AI data centers and infrastructure investment, supported its results.
Doosan Bobcat disclosed on the 29th that it recorded consolidated revenue of 2.4635 trillion won and operating profit of 167.4 billion won in the third quarter of this year. The figures were up 16.5% and 25.3%, respectively, from a year earlier. Net profit rose 15.1% to 94.2 billion won. In dollar terms, the currency used to prepare its financial statements, revenue was $1.728 billion and operating profit was $119 million, up 13.0% and 22.0%, respectively. The increases reflected higher sales volumes in key markets and the effects of pricing policies.
In particular, dollar-denominated operating profit for the first three quarters of this year reached $455 million, equivalent to 94% of last year's full-year operating profit. Net cash at the end of the third quarter stood at $453 million, up about $100 million from the end of the previous quarter, thanks to operating activities and inflows from tariff refunds.
The main driver of third-quarter results was compact equipment, the company's core business. Revenue in dollar terms rose 15% year-on-year to $1.336 billion. This was due to shipments in North America of volumes deferred from the previous quarter and increased sales to rental companies. The recovery in demand in Europe, the Middle East and Africa (EMEA) also contributed.
Industrial vehicle revenue rose 8% to $254 million, driven by increased sales in key markets such as North America and Europe. Portable power revenue increased 5% to $99 million. The gains came as sales to rental companies returned to normal and North American construction activity, including data center construction, remained robust.
Revenue grew broadly across regions as well. North American revenue increased 15%, driven by shipments of deferred compact equipment volumes and higher sales of industrial vehicles to large customers. Revenue in Asia, Latin America and Oceania (ALAO) rose 14%, thanks to strong compact equipment sales in South America and improved demand for industrial vehicles in India and South America. EMEA revenue increased 3%, supported by sustained demand for compact equipment and a recovery in demand for industrial vehicles.
Doosan Bobcat projected that it would maintain revenue at a level similar to the third quarter in the next quarter, as shipments of deferred compact equipment volumes continue. It also expected industrial vehicles to sustain their growth on the back of robust demand. However, it said uncertainty remained in the European market due to political instability and geopolitical risks, despite increased public investment.
Meanwhile, Doosan Bobcat's board of directors set the third-quarter dividend at 400 won per share that day. Under its corporate value enhancement plan, the company has set its annual minimum dividend at 1,600 won per share and pays dividends quarterly.
[email protected] Jung Won-il Reporter