PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
A boom in ultra-high-voltage transformer and cable orders at core subsidiary Iljin Electric is lifting consolidated operating results, but non-operating volatility, including a net loss attributable to owners in the second quarter of 2026, continues to weigh on holding-company earnings.
Consolidated 2025 revenue reached KRW 2.2827 trillion with operating profit of KRW 145.6 billion (6.4% operating margin), the strongest level in the last four fiscal years.
Net profit attributable to owners swung negative in 2025Q4 (-KRW 2.8 billion) and 2026Q2 (-KRW 53.8 billion), pushing the trailing four-quarter total into negative territory.
The debt ratio rose from 74.7% in 2022 to 103.4% in 2025, reflecting increased leverage tied to capacity expansion and investment financing.
Iljin Electric has continued winning ultra-high-voltage transformer and cable orders in the United States, United Kingdom, and Malaysia, coinciding with the ramp-up of its new Hongseong plant.
The stock trades below book value per share, and shareholder-return policy attention persists amid evolving dividend disclosure rules.
Iljin Holdings is a pure holding company formed in 2008 by combining the investment divisions of Iljin Electric and Iljin Diamond, with dividend income from subsidiaries and brand royalty income as its main revenue sources, and it holds Iljin Electric, Iljin Diamond, and numerous other subsidiaries.
Its business is diversified across cables and power equipment, industrial diamonds, hydrogen storage vessels, emission-reduction devices, and real estate leasing.
Core subsidiary Iljin Electric is a comprehensive heavy-electric equipment company operating in more than 80 countries and is the only domestic firm to manufacture both cables and power equipment such as transformers and circuit breakers.
Iljin Holdings' stake in Iljin Electric recently declined from 47.76% to 45.32% following a price return swap (PRS) transaction. Most of the group's total revenue comes from Iljin Electric, so holding-company earnings are strongly linked to its performance.
Among non-power subsidiaries, Iljin Diamond produces industrial synthetic diamonds and cemented carbide tooling materials, while Iljin Hysolus focuses on Type 4 hydrogen storage vessels supplied for products such as Hyundai's Nexo and related environmental businesses.
Iljin Holdings recently arranged a KRW 100 billion PRS contract using Iljin Electric shares, stating the proceeds would be used for future growth investment purposes. In the power equipment segment, HD Hyundai Electric, LS Electric, and Hyosung Heavy Industries are cited as major domestic competitors.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩580B | ₩36.1B | 6.2% |
| 2025Q3 | ₩517.3B | ₩32.9B | 6.4% |
| 2025Q4 | ₩679.8B | ₩44.3B | 6.5% |
| 2026Q1 | ₩572.9B | ₩52.1B | 9.1% |
| 2026Q2 | ₩714.4B | ₩78.9B | 11.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩44.9B | ₩18.4B | 3.1% | 4.3% | 74.7% |
| 2023 | ₩1.5T | ₩57.5B | ₩27.4B | 3.9% | 6.1% | 77.0% |
| 2024 | ₩1.8T | ₩72.5B | ₩22.6B | 4.0% | 4.9% | 88.4% |
| 2025 | ₩2.3T | ₩145.6B | ₩35.2B | 6.4% | 6.7% | 103.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
Consolidated revenue rose sharply from KRW 1.4339 trillion in 2022 to KRW 2.2827 trillion in 2025, while operating profit expanded from KRW 44.9 billion to KRW 145.6 billion, lifting the operating margin from 3.1% to 6.4%.
Over the same period, net profit attributable to owners moved more modestly, at KRW 18.4 billion (2022), KRW 27.4 billion (2023), KRW 22.6 billion (2024), and KRW 35.2 billion (2025), a pattern attributable to the sizable minority-interest share tied to partly owned subsidiaries such as Iljin Electric.
On a quarterly basis, operating profit stayed resilient or expanded every quarter: KRW 36.1 billion in 2025Q2, KRW 32.9 billion in 2025Q3, KRW 44.3 billion in 2025Q4, KRW 52.1 billion in 2026Q1, and KRW 78.9 billion in 2026Q2.
Yet net profit attributable to owners turned negative twice, at -KRW 2.8 billion in 2025Q4 and -KRW 53.8 billion in 2026Q2, meaning operating-level improvement did not fully translate into bottom-line results.
This gap appears to stem from non-operating items such as financial or equity-method losses, though the exact breakdown requires confirmation from subsequent disclosure notes.
Among subsidiaries, Iljin Hysolus recorded losses due to delayed hydrogen infrastructure expansion, and Iljin Display also posted a 46.0% year-on-year revenue decline along with continued operating and net losses in the first quarter of 2026, partly confirming a drag from non-power affiliates.
As a result, the trailing four-quarter (2025Q3-2026Q2) cumulative net profit attributable to owners came to -KRW 23.3 billion, illustrating a coexistence of solid operating profit and weak bottom-line results.
Operating cash flow nonetheless grew from KRW 68.4 billion in 2022 to KRW 144.6 billion in 2024 before settling at KRW 107.8 billion in 2025, showing that much of the earnings improvement has carried through to cash generation.
The power equipment industry is in a phase of surging global transformer demand driven by AI data center expansion, aging grid replacement, and large power projects in the United States and the Middle East, which has drawn early attention to HD Hyundai Electric, LS Electric, and Hyosung Heavy Industries.
Industry sources note that transformer production line utilization has reached as high as 95%, reflecting a persistent supplier-favorable market.
An analyst at eBest Investment & Securities assessed that the power equipment industry's upcycle across North America, Europe, and the Middle East is likely to persist for a considerable period.
Iljin Electric differentiates itself as the only domestic company operating both cable and heavy-electric equipment (transformer and circuit breaker) businesses, enabling turnkey supply of generation, transmission, and substation systems.
Its completed development of high-voltage direct current (HVDC) transmission technology, now being pursued for orders in North America and Europe, aligns with renewed nuclear power adoption and expanding offshore wind infrastructure demand.
At the same time, trade conditions are shifting, including a 15% U.S. tariff on imported transformers, making it necessary to continually monitor how tariffs affect costs and profitability.
Within this environment, Iljin Holdings benefits from the cycle indirectly through its Iljin Electric stake, while the holding company's own business portfolio diversification remains relatively limited.
Iljin Electric signed a long-term ultra-high-voltage transformer supply contract worth about KRW 431.8 billion with a U.S. East Coast energy company last year, with deliveries scheduled sequentially from 2026 through 2030. Products from the new plant are expected to be mostly exported to the United States.
In July 2026, the company announced winning a KRW 84.5 billion order for a section of a 400kV underground transmission line connecting eastern and southeastern England, its largest order in Europe, as part of a grid reinforcement project delivering offshore wind power to demand centers.
Earlier in the first half of the same year, it also secured a KRW 62.1 billion order to supply 275kV ultra-high-voltage cables for a data center in Malaysia.
This order momentum is tied to additional capacity secured through the Hongseong plant expansion, and the company has stated its intent to pursue both revenue growth and operating margin improvement as the new plant reaches full operation.
Iljin Electric's consolidated first-quarter 2026 results showed revenue up 10.6%, operating profit up 49.1%, and net profit up 57.0% year on year, confirming improvement across both the cable and heavy-electric equipment segments.
For holding company Iljin Holdings, such subsidiary-level improvement carries potential to expand dividend income, but if the non-operating earnings volatility identified above persists, the predictability of consolidated net profit may remain limited.
Iljin Holdings' share price sits at a level below its book value per share, reflecting a discount to net asset value. This can be read as a reflection of the holding company's heavy reliance on a single core subsidiary, Iljin Electric, combined with quarter-to-quarter volatility in net profit attributable to owners.
Annual results have shown consistent growth in both revenue and operating profit, but net profit attributable to owners has moved inconsistently, alternating between annual gains and quarterly losses.
Dividends have continued on an annual basis, and recent regulatory changes, including separate taxation on dividend income for high-dividend companies and mandatory value-up plan disclosures, are broadly increasing transparency around dividend-related disclosures.
How these regulatory changes translate into concrete shareholder-return policy at the individual company level remains something to be confirmed through future disclosures.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-22
Core subsidiary Iljin Electric continues to secure large ultra-high-voltage transformer and cable orders in the United States, United Kingdom, and Malaysia, sustaining order momentum.
AI data center expansion and aging grid replacement demand are also creating a supplier-favorable environment across global power equipment makers broadly. If this trend continues, it could open a path toward expanded dividend income for holding company Iljin Holdings.
As the Hongseong plant expansion boosts transformer and cable production capacity, an operating leverage effect is expected in this phase. First-quarter 2026 subsidiary results already showed operating profit growth significantly outpacing revenue growth.
If utilization rates remain elevated, there is room for further operating margin improvement through fixed-cost absorption.
Operating cash flow rose steadily from 2022 through 2024 and remained above KRW 100 billion in 2025, indicating that earnings improvement has translated into actual cash inflow. Dividends have continued annually, and disclosure reforms for high-dividend companies could improve the predictability of dividend procedures. This supports the holding company's dividend-income-based revenue model.
Unlike operating profit, which stayed resilient every quarter, net profit attributable to owners turned negative in both the fourth quarter of 2025 and the second quarter of 2026.
The trailing four-quarter cumulative net profit to owners was also negative, exposing a structural pattern in which improved consolidated operating results do not fully carry through to shareholder earnings. Weak performance at some non-power subsidiaries also appears to have contributed to this gap.
The debt ratio rose markedly from 74.7% in 2022 to 103.4% in 2025. This is interpreted as reflecting expansion-related investment and associated financing, and if interest or financial expense burdens grow further, it could amplify net profit volatility.
Capital-structure-related transactions such as derivative (PRS) contracts using Iljin Electric shares have also been increasing.
Because most of the group's total revenue comes from Iljin Electric, a reversal in the power equipment cycle could shake holding-company results as well.
Non-power subsidiary Iljin Hysolus recorded losses due to delayed hydrogen infrastructure expansion, while Iljin Display continued to post revenue declines and losses, indicating limited diversification benefit from the portfolio.
The current boom in power equipment demand relies heavily on specific drivers such as AI data centers and aging grid replacement, so a cycle reversal could affect both orders and margins.
Changes in trade conditions, such as U.S. tariffs on imported transformers, could also add further variables to costs and profitability.
The debt ratio has risen continuously over the past three years, and capital-structure-related transactions such as derivative contracts using Iljin Electric shares could amplify net profit volatility.
Since the precise nature of non-operating gains and losses has not yet been fully explained, confirmation through related disclosures is needed.
The Iljin Group's affiliates have been separated under a second-generation management structure, and Iljin Holdings maintains its control through related parties including Iljin Partners.
Such a complex ownership and transaction structure requires ongoing monitoring from the perspective of aligning interests with minority shareholders.
Check the Q3 2026 earnings disclosure for whether net profit attributable to owners returns to positive territory, and for details on the non-operating items that drove the large Q2 2026 net loss.
It is worth checking whether the first full quarter reflecting complete Hongseong plant utilization shows both revenue expansion and operating margin improvement together.
Monitor the progress of initial delivery and revenue recognition under the KRW 431.8 billion long-term U.S. ultra-high-voltage transformer supply contract scheduled for sequential delivery from 2026 through 2030.
It is necessary to further confirm the actual cost and margin impact of U.S. tariffs on imported transformers in subsequent quarters.
Check the dividend resolution at the annual general meeting and related value-up plan disclosures for concrete direction on shareholder-return policy.
Iljin Holdings has seen consolidated revenue and operating profit grow for four consecutive years, driven by strong ultra-high-voltage transformer and cable orders at core subsidiary Iljin Electric.
However, net profit attributable to owners turned negative in both the fourth quarter of 2025 and the second quarter of 2026, revealing a structural pattern in which operating-level improvement does not fully translate into shareholder earnings.
A rising debt ratio and derivative-related capital structure transactions remain potential sources of continued non-operating earnings volatility.
On the industry side, the power equipment supercycle driven by AI data center and aging grid replacement demand continues, keeping the directional environment for subsidiary earnings improvement favorable.
That said, the single-subsidiary dependence structure, weak performance at non-power affiliates, and the complex ownership and transaction relationships under the governance structure should be considered as risks inherent to the holding company.
Whether the specific causes of non-operating gains and losses are clarified through the upcoming third-quarter results and related disclosures will be an important clue for assessing earnings predictability going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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