Sanil Electric (062040) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached 98.8 billion KRW, with operating profit of 37.5 billion KRW, net income of 31.2 billion KRW, and an operating margin of 38.0%.

• Year-over-year revenue grew 39.9%, operating profit increased 61.4%, and net income rose 89.7%.

• Orders surged 103.2% year-over-year, and order backlog rose 53.9%.

• Gross margin improved to 47.4%, with gross profit of 46.8 billion KRW.

• Over 96% of sales were exports, with the US accounting for 69% of total revenue.

Financial highlights

• Revenue for Q1 2025 was 98.8 billion KRW, up from 70.6 billion KRW in Q1 2024.

• Operating income was 37.5 billion KRW (Q1 2024: 23.3 billion KRW); net income was 31.2 billion KRW (Q1 2024: 16.5 billion KRW).

• Basic EPS was 1,028 KRW; diluted EPS was 1,006 KRW.

• Cash and cash equivalents at quarter-end were 41.8 billion KRW.

• Gross margin for Q1 2025 was 47.4%.

Outlook and guidance

• Deferred revenue suggests Q2 2025 revenue may exceed Q1 if shipping delays are resolved.

• The company plans to expand its US presence by establishing a local subsidiary and service center.

• Ongoing investments in automation and capacity are expected to support continued growth.

• The global transformer market is forecasted to grow at a CAGR of 8.7% through 2032, driven by renewable energy and grid modernization.

• Continued demand in power grid and renewable sectors expected to support growth.