LS Electric has achieved record sales and operating profit for the second quarter, driven by the power supercycle.
On July 23, LS Electric announced that its consolidated sales for the second quarter reached 1.577 trillion won, with an operating profit of 178.5 billion won. This marks a 32.2% increase in sales and a 64.4% rise in operating profit compared to the same period last year. Compared to the previous quarter, sales grew by 14.6% and operating profit increased by 41.0%.
These results significantly surpass the previous record set in the fourth quarter of last year.
In the second quarter, new orders totaled approximately 2.1 trillion won, continuing a solid growth trend. As a result, the current order backlog has increased by about 1.4 trillion won from the previous quarter, totaling 7 trillion won.
The growth in performance was driven by the AI data center distribution business and the high-voltage transformer sector. The expansion of AI data center construction by global tech giants and increased capital investment in advanced manufacturing, such as semiconductors, have propelled the growth of distribution solutions. Additionally, ongoing demand for replacing aging power grids in the global market has led to significant growth in the high-voltage transformer business.
Notably, sales of high-voltage transformers surged by 91.2% compared to the same period last year. The stabilization of the Busan high-voltage transformer production facility, which was completed last year, has significantly increased supply volumes. Sales from LS Power Solutions, a subsidiary specializing in high-voltage transformers, also rose by approximately 39% year-on-year.
In the rapidly growing global energy storage system (ESS) market, LS Electric secured about 130 billion won in orders in the second quarter alone, driven by the expansion of renewable energy.
Regionally, the North American market showed the most significant performance, generating approximately 400 billion won in sales, setting a record for the highest quarterly sales. The company is expanding investments in key production bases such as LS Electric Utah and the Bastrop Campus in Texas.
In Europe, the company targeted demand for power grid replacements, resulting in a 21% increase in sales from its Spanish subsidiary. Sales from its Middle Eastern operations, where infrastructure investments are active, surged by about 42%, while the Vietnamese subsidiary also saw a 34% increase in sales, benefiting from investments in data centers and manufacturing.
An LS Electric official stated, "As demand for power infrastructure surges globally, particularly in North America, we have achieved record results through increased orders for high-value products. We aim to expand our global market share by delivering results in future power solutions such as high-voltage direct current (HVDC) and low-voltage direct current (LVDC)."
* This article has been translated by AI.
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