Doosan Robotics narrows Q3 losses as end-of-line business grows

Narrowing the gap on losses

Doosan Robotics reported its financial results for the third quarter of this year, showing a mixed bag of growth and continued spending. On a consolidation basis, the company recorded revenue of 16.2 billion won, which represents a 59.1% increase compared to the 10.1 billion won reported during the same period last year.

Despite this jump in top-line revenue, the company remains in a period of heavy investment. It reported an operating loss of 13.4 billion won for the quarter. This figure is an improvement from the 15.2 billion won loss recorded in the third quarter of the previous year.

The company attributed these ongoing losses to the high costs associated with scaling its operations. Specifically, Doosan Robotics noted that selling, general and administrative expenses were driven up by hiring new staff and funding research and development (R&D) initiatives.

Growth in end-of-line automation

The primary driver of the company's recent growth is its core business in the end-of-line (EOL) institutional sector. EOL refers to the final stages of the manufacturing process, which typically include tasks like palletizing products or packaging them for shipment.

As reported by Chosunbiz, the revenue from this specific sector reached $5 million in the third quarter. This is a significant jump from the $3.2 million reported in the same quarter a year ago, marking a 55% increase in year-over-year growth.

This expansion is being fueled by a growing demand for automated solutions in North America and other international markets. The company also noted a healthy backlog for this sector, which sat at approximately $9 million during the second quarter of this year.

Research and national projects

While the EOL sector provides current revenue, Doosan Robotics is using its position to fund long-term technological goals. The company is currently conducting research to broaden its reach into collaborative robots, robot software, and humanoids.

To support these goals, the company is participating in several national projects in South Korea. These include the development of intelligent welding solutions and the creation of next-generation collaborative robot technology based on AI semiconductors.

The company is also looking for ways to accelerate its technological progress through external means. Doosan Robotics stated it is continuing efforts to secure additional technology through partnerships and mergers and acquisitions (M&A).

The path toward humanoids

The company's long-term strategy involves moving beyond simple manufacturing tasks into more complex industrial applications. Doosan Robotics stated, "We are focusing on expanding our business into industrial humanoids." This represents a move toward robots that can mimic human movement and interaction.

To achieve this, the firm is pushing to develop new hardware models for collaborative robots. These are robots designed to work safely alongside humans in shared workspaces, rather than being confined to cages.

By balancing the immediate revenue from EOL manufacturing with these high-tech R&D goals, the company aims to transition from a loss-making startup to a diversified robotics leader. The success of these projects will determine if the company can eventually turn its operating losses into profits.

Net loss and revenue details

The company disclosed its third-quarter results on the 29th, showing a complex financial picture. While the revenue grew significantly, the net loss actually widened to 18.3 billion won, an increase from the 12.8 billion won loss recorded during the same period last year. This indicates that while the company is bringing in more money, its total expenses are currently outpacing its gains.

The revenue of 16.2 billion won was achieved on a consolidation basis. This growth is specifically tied to the expansion of the core business in the end-of-line institutional sector. By focusing on these specific manufacturing stages, the company is attempting to build a stable foundation to support its broader technological ambitions.