■ Q2 revenue KRW 1.5770 trillion • operating profit KRW 178.5 billion ··· up 32.2% • 64.4% YoY
■ New orders KRW 2.1 trillion • order backlog KRW 7.0 trillion ··· accelerating growth through investment in global production hubs
■ Strengthening margins by expanding high-end orders such as big-tech distribution solutions and extra-high-voltage transformers
LS ELECTRIC posted all-time highs in both revenue and operating profit, supported by the supercycle in the global power market.
LS ELECTRIC announced via a filing on the 23rd that it recorded Q2 revenue of KRW 1.5770 trillion and operating profit of KRW 178.5 billion this year. This represents year-on-year increases of 32.2% and 64.4%, respectively, and quarter-on-quarter increases of 14.6% and 41.0% as well. Both revenue and operating profit surpassed the previous quarterly records set in Q4 last year, achieving the company’s best-ever quarterly performance.
New orders in Q2 totaled about KRW 2.1 trillion, and the current order backlog increased by about KRW 1.4 trillion quarter-on-quarter, remaining at around KRW 7.0 trillion.
While growth continued across all business areas, the data center distribution business and the extra-high-voltage transformer business led the expansion. The global expansion of AI data centers and increased facility investment in advanced manufacturing industries such as semiconductors drove distribution solution performance, while continued demand for aging grid replacement worldwide also supported growth in the extra-high-voltage transformer business.
Backed by its unrivaled AI data center power solutions, LS ELECTRIC has been signing supply contracts in succession with major global big-tech companies. Leveraging its capability to supply total power solutions from extra-high voltage to low voltage, it has rapidly provided high-efficiency, high-performance power infrastructure and strengthened its footing in the North American market.
LS ELECTRIC’s Q2 extra-high-voltage transformer revenue rose 91.2% year-on-year. Amid continued demand driven by grid modernization—centered on North America—and surging data center power demand, the company has been increasing supply as its second extra-high-voltage transformer production building in Busan, completed last year, entered a stable production phase. Revenue at LS Power Solutions, its extra-high-voltage transformer subsidiary, also increased by about 39% year-on-year.
In the global energy storage system (ESS) market, which is gaining attention amid the expansion of renewable energy, LS ELECTRIC was recognized for its competitiveness and won orders worth about KRW 130 billion in Q2 alone.
By region, performance was strongest in North America. The company generated about KRW 400 billion in revenue in the region alone, setting a new quarterly sales record there.
In line with rising North American demand, LS ELECTRIC is increasing investment in major production hubs such as “LS ELECTRIC Utah” in Utah and the “Bastrop Campus” in Texas. Its strategy is to accelerate growth in the North American market by expanding local production capacity and high-end product technology capabilities.
The company also posted growth in key global business hubs including Europe, the Middle East, and ASEAN. In Europe, the Spain subsidiary’s revenue rose about 21% year-on-year as it actively targeted grid replacement demand in line with the renewable energy expansion trend. Middle East subsidiary revenue surged about 42% amid growing power infrastructure investment, while in ASEAN, the Vietnam subsidiary’s revenue increased about 34% supported by expanding investments by global companies in data center construction and manufacturing facility expansion.
An LS ELECTRIC official said, “As demand for power infrastructure is surging explosively in global markets including North America, we achieved record-high results as orders increased for high value-added products spanning from distribution solutions to extra-high-voltage transformers,” adding, “We will continue to deliver results in future power solution businesses such as HVDC and LVDC and accelerate efforts to expand our global market share.”