Sanil Electric (062040) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was KRW 150.3 billion, up from KRW 98.8 billion in Q1 2025, driven by strong export sales, especially to the US, which accounted for over 97% of total sales and 87% of export sales.

• Operating income for Q1 2026 reached KRW 55.5 billion, a significant increase from KRW 37.5 billion in Q1 2025.

• Net income for Q1 2026 was KRW 45.9 billion, up from KRW 31.2 billion in Q1 2025.

• Gross margin improved to 47% in Q1 2026 from 47% in Q1 2025, reflecting stable cost management despite raw material price volatility.

Financial highlights

• Cash and cash equivalents at Q1 2026 end were KRW 90.7 billion, down from KRW 108.6 billion at year-end 2025, mainly due to investment in production capacity.

• Total assets increased to KRW 732.2 billion from KRW 682.0 billion at year-end 2025.

• Total liabilities rose to KRW 137.4 billion from KRW 96.5 billion, with a debt ratio of 23%.

• Basic EPS for Q1 2026 was KRW 1,506, compared to KRW 1,028 in Q1 2025.

• Dividend payout for the most recent fiscal year was KRW 1,250 per share, with a payout ratio of 25.14%.

Outlook and guidance

• The company targets continued growth in the US market, planning to establish a local subsidiary and service center to increase market share.

• Ongoing investments in production automation and capacity expansion are expected to support further revenue growth.

• The global transformer market is forecast to grow at a CAGR of 8.7% through 2032, with strong demand from renewable energy and grid modernization.