LS Eco Energy Expected to Achieve Record First-Quarter Results... Rare Earth and Subsea Cable Businesses on Track

Sales Expected to Rise 7.7%, Operating Profit Up 9.0%
Strong Extra-High Voltage Cable Exports Drive Performance
Growth Prospects from Establishing “Rare Earth Value Chain”

Amid ongoing robust demand for power grid replacement and the expansion of artificial intelligence (AI) data centers, LS Eco Energy not only achieved record-breaking results last year but is also expected to continue its growth trajectory in the first quarter of this year. New businesses in rare earth elements and subsea cables, which have been identified as future growth drivers, are also rapidly taking shape.

According to the securities industry on April 3, Taehyun Kim, an analyst at IBK Investment & Securities, projected LS Eco Energy's consolidated results for the first quarter of 2026 to be sales of 245.9 billion won and operating profit of 16.7 billion won. This represents an increase of 7.7% in sales and 9.0% in operating profit compared to the same period last year.

Sales of 245.9 billion won and operating profit of 16.7 billion won mark the highest figures ever recorded for a first quarter. The record-breaking streak of sales of 960.1 billion won and operating profit of 66.8 billion won achieved in 2025 is expected to continue into the first quarter of this year.

It is assessed that strong exports of extra-high voltage cables, led by LS-VINA, are driving these record results. Proactive customer engagement and efforts to diversify the portfolio with a focus on high value-added products have also contributed to the improved performance.

LS Eco Energy Vietnam production corporation building. LS Eco Energy.

The cash-generating capability from its core business is serving as a foundation for nurturing next-generation growth engines. In particular, new businesses being pursued amid the global supply chain reorganization are progressing as planned, raising expectations for mid- to long-term growth.

The most notable development is the establishment of a “rare earth value chain.” LS Eco Energy recently completed a share swap worth approximately 30 billion won with Lynas, the largest rare earth supplier outside China, thereby securing a stable raw material procurement structure.

On March 30, LS Eco Energy held a signing ceremony with Lynas to outline plans for rare earth raw material supply and the mass production of metals within the year. Through this, a global value chain connecting raw materials (Lynas), metallization (LS Eco Energy), and permanent magnets (LS Cable) has entered the operational stage.

Currently, LS Eco Energy is building metallization facilities on idle land at its LSCV plant in Vietnam, aiming to commence mass production within the year. The company is preparing to become a key supplier of core materials for advanced industries such as aerospace, electric vehicles, and robotics.

LS Eco Energy plans to complete the metallization facility at the LSCV plant in Vietnam and begin mass production within the year. Starting in the second half of this year with metals for the aerospace and missile defense sectors, the company intends to rapidly expand its business into metals for robotics and electric vehicles (EVs) by 2027.

The LSCV plant plans to produce approximately 2,500 tons of metals annually, including samarium for defense, as well as NdPr for robotics and offshore wind power. This quantity is sufficient to manufacture over 10,000 tons of permanent magnets.

In addition, the establishment of a subsea cable joint venture (JV) with local partner PTSC in Vietnam is in its final stages and is expected to be completed within the year.

An industry official commented, “Despite some external uncertainties such as U.S. tariffs, LS Eco Energy has once again proven the strong profit-generating capacity of its core business. With a solid foundation in its existing cable business, major new initiatives—such as de-risking the rare earth supply chain from China and expanding into subsea cables—are becoming visible, raising expectations for the company to achieve annual sales of 1 trillion won for the first time and enhance its corporate value this year.”

This content was produced with the assistance of AI translation services.