LS Surpasses Last Year's Annual Earnings in First Half as Power Supercycle Drives Operating Profit Past 1 Trillion Won

Record-High Q2 Operating Profit of 595.6 Billion Won
Strong Performance Driven by AI Data Centers and Global Power Grid Modernization

LS has continued its steep growth momentum, driven by the boom in the power industry due to the expansion of artificial intelligence (AI) and the increase in global data centers. As a result, the company achieved record-breaking results in the first half of this year, surpassing its annual operating profit from last year in just six months.

On August 14, LS announced through its regulatory filing that its consolidated sales for the second quarter of this year reached 11.0236 trillion won, with operating profit standing at 595.6 billion won. Compared to the same period last year, sales increased by 40% and operating profit by 153%, respectively, both marking the highest quarterly results in the company’s history.

As a result, the accumulated operating profit for the first half of this year came in at 1.0717 trillion won, surpassing last year’s total annual operating profit of 1.0526 trillion won in just half a year. Accumulated sales for the first half also grew by 39% year-over-year, reaching 20.528 trillion won.

This surge in performance is a result of the intensified global competition among large technology companies to build AI data centers, as well as the large-scale modernization of aging power grids in North America and Europe. LS supplies integrated solutions for the entire process of power infrastructure—from the production of high-purity electrolytic copper (copper with purity above 99.9%), which is a key raw material, to power transmission, transformation, and distribution—to markets around the world. As of the end of the first half, the combined order backlog for major subsidiaries such as LS Cable & System and LS ELECTRIC amounted to approximately 20 trillion won.

By major subsidiary, LS Cable & System led earnings by expanding its supply of high-voltage submarine cables and increasing orders for bus ducts for American AI data centers. LS ELECTRIC drove growth with improved profitability in data center power equipment and high-value-added ultra-high-voltage transformers. LS MnM benefited from higher prices of electrolytic copper and precious metals, while LS I&D saw a significant increase in operating profit due to the surge in demand for special-purpose winding wires through its North American subsidiary, Essex Solutions.

To sustain this growth momentum, LS is making continued investments—including the construction of LS Cable & System's submarine cable plant in Virginia, USA, and LS ELECTRIC's 'Bastrop Campus' and manufacturing facilities in Texas and Utah. The company is also expanding its investments in future growth engines such as building a value chain for nickel sulfate and precursors, which are essential battery materials, and securing rare earth supply chains.

Although the debt ratio saw a slight increase, the interest coverage ratio—which reflects the ability to cover interest expenses with operating profits—stood at 4.9 times, and the ratio of EBITDA to net debt was 3.9 times, both indicating a stable financial position.

An LS official stated, "Amid the power supercycle and the expanding global demand for power infrastructure, we will not rest on our laurels with our main subsidiaries’ strong performances. Especially in times like this, we will lay the foundation for the group's sustained growth by reinvesting domestically and abroad in both our core and new business areas. Additionally, through robust risk management and sound business practices, we will secure both financial health and the ability to respond to any market volatility."

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