Sanil Electric posts record third-quarter orders as profit growth slows

Sanil Electric said Wednesday its third-quarter operating profit rose 4.6 percent from a year earlier to 44.5 billion won ($33.2 million), as a stronger won and higher raw material costs offset sales growth.

Revenue climbed 10 percent on-year to 146 billion won ($109 million) in the three months to September, the company said in a regulatory filing. New orders reached a quarterly record of 279 billion won ($208 million), up 119 percent from a year earlier and 15 percent higher than the previous quarter. About 78 billion won of sales slipped into the fourth quarter and later as bad weather and geopolitical risks delayed shipments, the company said.

Profitability came under pressure as the average won-dollar exchange rate in the third quarter fell 5.5 percent from the previous three months, a stronger won that cuts the local-currency value of dollar-denominated sales. Prices for aluminium and insulating oil, key inputs for the company's power equipment, also rose over the same period.

The order book stood at 690 billion won ($514 million) at the end of the quarter, equal to 1.9 times quarterly revenue. Orders in the first nine months of the year totaled 701 billion won ($523 million), already 24 percent above the 566 billion won booked in all of 2025.

Exports made up 97.5 percent of third-quarter revenue, with the United States at 66.5 percent and Europe at 24.9 percent.

Sales to renewable energy, data center and energy storage customers reached 117 billion won ($87.2 million) in the third quarter, up 14.9 percent on-year but 11.7 percent lower than in the second quarter. Revenue from power grid customers fell 23.9 percent on-year to 20 billion won ($14.9 million), while other business generated 9.2 billion won ($6.86 million). The three segments together accounted for 80 percent of sales.

Order momentum continued in the third quarter, including additional contracts from U.S. fuel-cell maker Bloom Energy as Sanil's entry as an official vendor took effect, the company said.

Sanil expects profitability to improve as higher order volumes lift production and efficiency gains take hold.