Iljin Electric Posts Q3 Operating Profit of 70 Billion Won on Power Supercycle, Up 98.3% YoY

Third-quarter revenue reached 637.6 billion won and operating profit totaled 70 billion won
Cumulative operating profit reached 192.7 billion won, up 80.2% year-on-year

Iljin Electric posted strong results in the third quarter of this year, driven by growing demand for power equipment and cables. The company is believed to have sustained its growth on the back of increased overseas orders and rising global investment in power infrastructure.

Iljin Electric disclosed on November 11 that it recorded consolidated revenue of 637.6 billion won and operating profit of 70 billion won in the third quarter of this year. These figures represent year-on-year increases of 41.6% and 98.3%, respectively. Revenue rose from 331.3 billion won in 2024 to 450.1 billion won last year, continuing its upward trend in the third quarter of this year. Operating profit also increased, from 14.6 billion won in 2024 and 35.3 billion won last year to 70 billion won this year.

Cumulative revenue for the first three quarters totaled 1.7811 trillion won, while operating profit came to 192.7 billion won. Compared with the cumulative results for the same period last year, revenue increased by 24.5% and operating profit by 80.2%.

The order backlog also remained at around 3 trillion won. At the end of the third quarter, Iljin Electric's order backlog stood at approximately $2.25399 billion, equivalent to about 3.0492 trillion won. Heavy electrical equipment, including transformers and circuit breakers, accounted for about 69% of the total backlog, while cables made up around 31%. By region, approximately 72% of orders were from overseas and 28% from South Korea.

Iljin Electric CI. Iljin Electric

The company expects revenue to continue rising in both its heavy electrical equipment and cable businesses. It particularly anticipates faster growth in its cable business as overseas orders expand.

The main driver is increased global investment in power infrastructure. Demand for power equipment and cables is rising as the United States replaces aging power grids, Europe expands renewable energy generation, and countries continue developing their power networks. In South Korea, projects such as the Energy Highway and large-scale power infrastructure initiatives are also expected to support related demand.

With shipments continuing from orders already secured, Iljin Electric expects to post solid results in the fourth quarter as well. The company also anticipates additional orders for large-scale projects, which it expects will keep its order backlog growing.

The company said demand to replace aging power grids in the U.S. market remains strong. It expects new demand for power grids to increase as construction of renewable energy facilities, which Democrats have announced plans to promote, gets underway.

The company expects concerns that tighter data center regulations could reduce demand for transformers to have a limited impact. It explained that all of its U.S. transformer orders are for extra-high-voltage transformers used to build power grids, and that distribution transformers connected directly to data centers are not part of its product lineup.

The company expects demand for power equipment driven by data center expansion to continue over the long term, as major technology companies are also considering covering the costs of building infrastructure needed to supply data centers with electricity and adjusting their power consumption according to electricity supply conditions.

This content was produced with the assistance of AI translation services.