LS Electric Q2 Operating Profit 109.6 Billion KRW... Largest Q2 Record Ever

Sales Decreased by 5.77% to 1.1324 Trillion KRW
Expansion of AI Semiconductor and Data Center Investments
Impact of Global Power Demand Increase

LS Electric announced on the 25th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 109.6 billion KRW, a 4.51% increase compared to the same period last year.

LS Electric Cheongju Smart Factory view. Photo by LS Electric

This is the highest performance for the second quarter. It also exceeded the market forecast of 95.3 billion KRW. Sales amounted to 1.1324 trillion KRW, a 5.77% decrease compared to the same period last year. Net profit decreased by 11.47% to 64.6 billion KRW.

This strong performance is due to increased global power demand driven by expanded investments in artificial intelligence (AI) semiconductors and data centers, mainly in North America. Following the growth in the distribution and ultra-high voltage businesses, the order backlog increased from 2.3 trillion KRW at the end of last year to 2.6 trillion KRW in the first quarter and 2.8 trillion KRW in the second quarter.

To respond to the North American and global power markets, LS Electric recently expanded the capacity of its ultra-high voltage transformer production at the Busan plant and acquired shares in KOC Electric. This performance includes the beginning of large smart energy sales such as orders for the UK energy storage system (ESS) business, and LS Electric plans to expand its renewable energy business in the future. The company also stated that it will continue to launch distribution equipment products targeting internet data centers (IDC) and the North American market, as well as pursue research and development (R&D).