Sanil Electric is projected to post a record $32 million in operating profit in the second quarter of 2025, driven by increased global demand--particularly from the United States--for distribution transformers and related power equipment.

Analysts from Shinhan Investment, Yuanta, IBK Investment, and LS ELECTRIC estimate Q2 revenue at $86 million, up 49% from the same period last year, with operating profit up 71% year-over-year. The company's core product lines--distribution transformers and power network systems--account for nearly all its revenue, with transformers comprising 51% of total sales as of Q1.

Transformer orders have been rising sharply, fueled by U.S. infrastructure upgrades, AI-driven data center expansion, and electric grid modernization. The U.S. represented 69% of Sanil Electric's revenue in the first quarter, with the company aiming to further expand its presence in a market that makes up 25% of the global transformer industry.

To support this growth, Sanil Electric recently completed an expansion of its Ansan Factory 2, increasing annual production capacity to $462 million. Total manufacturing capacity now stands at $600 million, with additional expansion planned for 2026.

Operating profit margins are expected to reach 36-38% in Q2, supported by a shift to higher-value ground transformers and more diversified sourcing of raw materials. This represents a continued improvement from 10.6% in 2022 and 32.7% in 2024.

Source: biz.chosun.com