[Edaily Reporter KIM AH-REUM ] ILJIN ELECTRIC(103590)announced on the 11th that it recorded third-quarter revenue of 637.6 billion won and operating profit of 70.0 billion won, representing year-over-year increases of 41.6% and 98.3%, respectively. Cumulative results for the first three quarters showed revenue of 1.7811 trillion won and operating profit of 192.7 billion won, up 24.5% and 80.2% year-over-year, respectively. As of the third quarter of this year, the order backlog stood at $22.5399 trillion (approximately 3.0492 trillion Hanwha won), with the heavy electrical equipment sector—including transformers and circuit breakers—accounting for about 69% of the total order backlog, while the wire and cable sector accounted for the remaining 31%. Overseas orders accounted for 72%, while domestic orders accounted for 28%.

The company explained that both the heavy electrical equipment and wire and cable businesses are showing a sustained upward trend in sales, and continued growth is expected. In particular, growth is projected to accelerate due to the expansion of overseas orders in the wire and cable business. An official from ILJIN ELECTRIC stated, “Demand for power equipment and cables is steadily increasing due to the replacement of aging power infrastructure in the U.S., the expansion of renewable energy generation in Europe, and active power grid construction worldwide,” adding, “Domestically as well, there are many factors driving increased demand for power equipment and cables, such as the ‘Energy Highway’ initiative and various megaprojects.” The spokesperson continued, “Since orders already secured are being shipped out steadily, we expect solid fourth-quarter results,” and added, “With major projects expected to secure orders in the fourth quarter as well, we forecast a significant increase in new orders.”

The company stated that while demand for replacing aging power grid infrastructure in the U.S. remains robust, new demand for power grids is expected to rise once the construction of renewable energy facilities—which the Democratic Party has signaled it will actively promote—becomes a reality. It also maintains that ILJIN ELECTRIC’s products are unaffected by the trend toward stricter regulations on data centers in the U.S. An ILJIN ELECTRIC official said, “While there are concerns about a decline in transformer demand due to stricter data center regulations following the Democrats’ majority in the U.S., all of our transformer orders in the U.S. are for ultra-high-voltage transformers used in power grid construction. Distribution transformers directly connected to data centers are not part of our product lineup,” adding, “We do not expect the impact of data center regulations on our company to be significant.”