1. What Happened?

Iljin Power reported Q2 2025 revenue of ₩75.7 billion (up 75.2% YoY), operating profit of ₩6.2 billion (up 106.7% YoY), and net income of ₩5.5 billion. These figures significantly exceeded market expectations, marking a substantial earnings surprise.

2. Why Did This Happen?

The strong performance was primarily driven by steady growth in the Power Generation (60.2%) and Chemical Equipment/Plant (32.0%) divisions. Notably, the operating profit margin improved significantly to approximately 8.2%, compared to the previous quarter and the same period last year.

3. What’s Next?

This earnings surprise is likely to act as a short-term catalyst for stock price appreciation. However, the long-term outlook depends on the sustainability of this improved performance and the successful execution of Iljin Power’s new growth initiatives in nuclear and renewable energy sectors. The company’s debt-to-equity ratio, currently above 120%, requires ongoing monitoring. Macroeconomic factors, including fluctuations in exchange rates, interest rates, and raw material prices, should also be considered.

4. What Should Investors Do?

  • Short-term investors: Can capitalize on the positive momentum generated by the earnings surprise, but should be mindful of increased volatility.
  • Long-term investors: Should carefully evaluate the sustainability of earnings growth, the progress of new growth initiatives, and the company’s financial stability before making investment decisions.