Gaon Cable Posts Record Third-Quarter Results; Operating Profit Up 99.1% YoY

Revenue up 51.9% year over year, operating profit up 99.1%
Surpassed last year's full-year results in just nine months
Profitability improves amid U.S. AI data center demand

Gaon Cable posted record-high results in the third quarter of this year, driven by growth in the U.S. power infrastructure market and increased exports. After both third-quarter revenue and operating profit hit their highest levels ever for a quarter, cumulative results for the first three quarters also surpassed the full-year results for last year.

Gaon Cable said on October 19 that its provisional consolidated revenue for the third quarter of this year totaled KRW 986.5 billion, operating profit came to KRW 52 billion, and net profit reached KRW 30 billion.

Revenue rose 51.9% year over year, while operating profit increased 99.1%. Compared with the previous quarter, revenue and operating profit also climbed 13.5% and 43.9%, respectively, extending the growth trend.

A view of Gaon Cable's Gunpo site. Gaon Cable.

Cumulative revenue for the first three quarters totaled KRW 2.6194 trillion, and operating profit came to KRW 116 billion. In just nine months, both figures surpassed last year's full-year revenue of KRW 2.5457 trillion and operating profit of KRW 79.2 billion. In particular, operating profit growth far outpaced revenue growth, pointing to improving profitability alongside business expansion.

Strong results were driven by increased demand for cables and bus ducts amid the expansion of U.S. artificial intelligence (AI) data center (AIDC) construction, growth in renewable energy, and increased investment in power grids. Exports of distribution cables have also continued to rise as a shortage of power equipment in the U.S. coincides with increased investment in power grids.

Growth at LSCUS, the company's U.S. production subsidiary, also contributed to improved results. In cooperation with LS Cable, LSCUS supplies bus ducts to AIDCs operated by major U.S. technology companies and has established itself among the world's top five bus duct suppliers. It is also increasing cable supplies to AIDCs and solar power plants. As a result, its revenue this year is projected to reach about twice last year's level.

A Gaon Cable representative said, "The U.S. power infrastructure market continues to see structural growth, particularly in AIDCs and power grid investment. Building on increased exports from our headquarters and growth at LSCUS, we will sustain our record-setting performance and continue to improve profitability."

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