An encapsulated transformer in which the coil and core assembly of the transformer is encapsulated within a jacket of non-flexible epoxy resin, and a cushion of closed-cell foam rubber lies between the jacket and the coil and core assembly to preserve the integrity of the jacket while enabling thermal expansion and contraction of the core and coil assembly. Electrical contact members are integral with the jacket and are electrically connected to the core and coil assembly by flexible electrical leads.