LS Cable's Order Backlog Nears KRW 10 Trillion... Expands Growth Drivers in AIDCs and Subsea Cables

Order backlog up 20.2% from the end of last year
Gaon Cable and U.S. AIDC power infrastructure drive rapid growth
Subsidiaries account for 39% of the increase in the backlog

LS Cable's consolidated order backlog approached KRW 10 trillion, reaching a record high. The company's business portfolio is also diversifying as growth at key subsidiaries, including Gaon Cable, LS Eco Energy, LS Marine Solution, and LS Materials, adds to the competitiveness of its established businesses, such as extra-high-voltage and subsea cables.

LS Cable said on Nov. 11 that its consolidated order backlog stood at KRW 9.8522 trillion. This was an increase of KRW 1.6567 trillion (20.2%) from KRW 8.1955 trillion at the end of last year. Of the total, LS Cable's order backlog on a non-consolidated basis was KRW 7.8705 trillion, up KRW 918.4 billion over the same period.

LS Cable's Donghae Plant. LS Cable.

Its subsidiaries made a significant contribution to the increase in the order backlog. Gaon Cable and its subsidiaries accounted for about 39% of the total increase, with their order backlog rising more than fourfold, from KRW 194.1 billion at the end of last year to KRW 833.4 billion.

The key subsidiary driving this growth is LSCUS, LS Cable's U.S. subsidiary. LSCUS has an order backlog of KRW 676.5 billion. The increase reflects rising supplies of busducts and power distribution cables amid expanding investment in artificial intelligence (AI) data centers (AIDCs) in the United States. After signing long-term supply contracts with global Big Tech companies, LSCUS recently signed a KRW 120 billion contract to supply power distribution cables to a global cloud company. It is expanding beyond cable manufacturing into supplying power infrastructure for AIDCs.

Subsidiaries responsible for overseas production bases and new businesses are also continuing to grow. Leveraging its production base in Vietnam, LS Eco Energy is pursuing investment in production facilities for high-capacity busducts for AIDCs, as it moves to capture the high-value-added power infrastructure market. Its order backlog rose 43% year over year to KRW 280.3 billion.

LS Marine Solution has strengthened its capabilities in installing long-distance, high-capacity subsea cables by securing a large cable-laying vessel and upgrading its performance. Its subsea order backlog is KRW 201.6 billion, up 42% year over year. The company also expects to secure additional orders as domestic offshore wind projects and the West Coast high-voltage direct current (HVDC) power grid project move into full swing.

A view of Gaon Cable's Gunpo facility. LS Cable.

LS Materials has secured an order backlog of KRW 74.9 billion, supported by large-scale contracts, including one with a U.S. hydrogen fuel cell company. It is broadening the foundation for its new businesses by expanding the use of ultracapacitors (UCs), which can deliver large amounts of power instantaneously and charge and discharge rapidly, into AIDC power stabilization systems and hydrogen fuel cell applications.

Industry observers see LS Cable's growing order backlog not simply as a result of increased demand for cables, but as part of a broader diversification of its business structure. While targeting the global power transmission market with extra-high-voltage and subsea cables, its subsidiaries are expanding into power infrastructure more broadly, including AIDC power distribution equipment, subsea cable installation, and power stabilization solutions.

An LS Cable representative said, "The subsidiaries' AI data center power infrastructure and installation capabilities, combined with our core business's unrivaled cable technology, have enabled us to complete an end-to-end power grid construction system." The representative added, "As order growth and improved results at our subsidiaries gain momentum, we expect the market's valuation of LS Cable to rise significantly."

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