LS Reports Record Q2 Operating Profit of 595.6 Billion Won, Up 153% Year-on-Year

LS has reported significant growth in its performance, driven by the expansion of artificial intelligence (AI) and the global increase in data centers, achieving an operating profit that surpasses last year's total in just the first half of this year.

On August 14, LS announced that its Q2 revenue reached 11.236 trillion won, with an operating profit of 595.6 billion won. These figures represent increases of 40% and 153%, respectively, compared to the same period last year, marking the highest quarterly revenue and operating profit in the company's history.

For the first half of the year, LS achieved a cumulative operating profit of 1.0717 trillion won, exceeding last year's total annual operating profit of 1.0526 trillion won. The cumulative revenue for the first half reached 20.528 trillion won, reflecting increases of 39% and 98.4% compared to the same period last year.

This strong performance is attributed to the ongoing projects for replacing aging power grids, particularly in North America and Europe, and the expansion of AI data centers by major global tech companies. LS provides integrated solutions across the entire power infrastructure market, from copper production to transmission, transformation, and distribution. The combined order backlog for LS Cable, LS Electric, and other subsidiaries amounts to approximately 20 trillion won (as of the end of the first half, 19.5554 trillion won).

Among its key subsidiaries, LS Cable has driven growth through the expansion of high-value products such as ultra-high voltage submarine cables and securing contracts for power supply systems for AI data centers in the U.S. LS Electric has achieved strong results through contracts for power equipment projects related to AI data centers and increased profitability from ultra-high voltage transformers. LS MnM has significantly improved its operating profit due to strong demand for premium copper and rising prices of precious metals and sulfuric acid products. LS I&D has seen a substantial increase in operating profit compared to the same period last year, driven by a surge in demand for special windings for transformers, particularly from its North American subsidiary, Essex Solutions.

To sustain this growth, LS is investing in its power infrastructure sector, including LS Cable's submarine cable factory in Virginia and LS Electric's facilities in Texas and Utah. The company is also expanding investments in future businesses, such as secondary battery materials and critical minerals like rare earth elements. LS MnM (Onsan) and LS-LNF Battery Solutions (Saemangeum) are establishing a value chain for battery materials, including nickel sulfate and precursors, while LS Cable is securing a stable supply base for essential national materials like rare earth elements in collaboration with LS Eco Energy.

An LS official stated, "In response to the power supercycle, we will strengthen reinvestment in our core and new business areas to establish a foundation for sustainable growth. We will also ensure financial soundness to respond to any market volatility through stable risk management and solid management practices."