Three major LS Cable & System subsidiaries posted record first-half earnings as investment in AI data centers and power grids drove demand for cables, bus ducts and subsea infrastructure.
Gaon Cable, LS Eco Energy and LS Marine Solution generated combined revenue of 2.42 trillion won ($1.75 billion) and operating profit of 119.7 billion won in the January-June period.
Gaon Cable reported consolidated revenue of 1.63 trillion won, up 27.3 percent from a year earlier. Operating profit jumped 41.8 percent to 64 billion won, lifting its operating margin from 3.5 percent to 3.9 percent.
Growth was led by its US business. The company recently secured a 50 billion won contract to supply power distribution cables to a US manufacturing subsidiary.
LS Eco Energy posted revenue of 635.8 billion won and operating profit of 45.4 billion won, up 32.8 percent and 16.5 percent, respectively.
The company attributed the gains to increased sales of high-value-added products, including extra-high-voltage cables for Europe and bus ducts used in AI data centers.
LS Marine Solution, which installs subsea cables, recorded consolidated revenue of 148.2 billion won, operating profit of 10.3 billion won and net profit of 13.1 billion won.
Revenue rose about 33 percent on-year, while operating and net profit increased 61 percent and 217 percent, respectively.
The company’s order backlog stood at about 660 billion won, supported by subsea power cable installation projects in Taiwan and undersea telecommunications cable projects across the Asia-Pacific region.
The three companies expect demand to remain strong as investment grows in AI data centers, renewable energy and the replacement of aging power grids.
jyoungseon8@heraldcorp.com