[Edaily Reporter kyoungeun kim ] CS Wind Corporation confirmed improved profitability in its tower division in the third quarter, driven by productivity gains at its U.S. subsidiary. Analysts predict that the U.S. wind power industry will benefit from a more favorable environment now that the Democratic Party’s bargaining power has increased following the U.S. midterm elections.

Cho Jae-won, an analyst at KIWOOM Securities, made this statement in a report on the 9th, maintaining a “Buy” rating and a target price of 76,000 won for CS Wind Corporation. The closing price on the 6th was 49,100 won.

CS Wind Corporation’s third-quarter revenue totaled 677.5 billion won, up 14% year-over-year, while operating profit rose 23% to 80.7 billion won. Although revenue fell short of market expectations (716.9 billion won), operating profit met expectations (80.0 billion won). Operating profit in the tower segment surged 83% to 58.8 billion won, an increase of approximately 25.0 billion won compared to the same period last year.

Analyst Cho noted, “I would like to highlight that the operating profit margin for the Tower division, excluding the Advanced Manufacturing Production Tax Credit (AMPC), exceeded 5%,” explaining, “This was due to the leverage effect generated by increased production volume amid ongoing efforts to improve productivity at the U.S. subsidiary.” Starting this year, CS Wind Corporation has been implementing measures to improve productivity at its U.S. subsidiary, including recruiting highly skilled personnel from other subsidiaries, installing automated equipment, and optimizing costs.

However, the company remained cautious regarding the pace of improvement. Analyst Cho stated, “While the U.S. subsidiary’s productivity improvement trend is expected to continue, the pace of improvement may not be as rapid as anticipated until the first half of next year, when the expansion of orders for new customers—which involve higher production complexity—begins in earnest.” He added, “We have conservatively reflected the fourth-quarter operating profit margin, taking into account that preliminary preparations for next year’s volume expansion are already underway.”

He predicted that the policy environment would become more favorable. Analyst Cho analyzed, “Measures taken by the Trump administration—such as suspending the issuance of new permits and halting construction—led to increased uncertainty across the U.S. wind power industry and deteriorating project profitability.” He added, “As the Democrats’ bargaining power has strengthened following the midterm elections, we expect the environment to become more favorable for the wind power industry.”

He identified the resolution of permitting risks as the most likely change to materialize. The assessment is that if the review process for wind farms that have been delayed or suspended resumes, wind installation volumes and order opportunities could increase again starting in 2027. On the 9th, the U.S. Senate is also scheduled to vote on the bipartisan BAAJA (Bipartisan American Jobs and Energy Act) bill. Researcher Cho stated, “This bill includes provisions to prevent discriminatory regulations against the wind power industry and to protect existing approvals, which will contribute to securing medium- to long-term visibility for the U.S. wind power industry.”

He emphasized, “While it is unlikely that the tax credit bill will be amended in the short term, it remains a valid bargaining chip,” adding, “These changes in the policy environment could serve as an upside factor for CS Wind Corporation’s earnings estimates after 2027, when the AMPC expires.”