LS Electric (LS ELECTRIC) posted record quarterly revenue and operating profit, riding a super-cycle in the global power market driven by the expansion of artificial intelligence (AI) data centers and rising investment in advanced manufacturing facilities.
LS Electric reported second-quarter revenue of 1.577 trillion won and operating profit of 178.5 billion won, the company said in a regulatory filing on the 23rd. The figures rose 32.2% and 64.4%, respectively, from a year earlier. The results surpassed the previous record set in the fourth quarter of last year, when revenue reached 1.5208 trillion won and operating profit 130.2 billion won, marking the highest quarterly performance in the company's history.
New orders in the second quarter totaled approximately 2.1 trillion won. The current order backlog stands at around 7 trillion won, an increase of 1.4 trillion won from the previous quarter.
The data center power distribution business and the ultra-high-voltage transformer business were cited as drivers of the results. The expansion of global AI data centers and investment in advanced manufacturing facilities such as semiconductors led the performance of distribution solutions.
In particular, ultra-high-voltage transformer revenue rose 91.2% from a year earlier. This came as power demand for modernizing aging power grids and for data centers surged, centered on North America, while the second ultra-high-voltage transformer production building in Busan, completed last year, entered a stabilization phase and expanded supply capacity. Revenue at LS Power Solutions, the ultra-high-voltage transformer subsidiary, also rose 39% from a year earlier.
For energy storage systems (ESS), the company won orders worth approximately 130 billion won in the second quarter.
Backed by its AI data power solutions, LS Electric secured a series of supply contracts with global big tech companies. Its ability to supply total power solutions from ultra-high voltage to low voltage is credited with strengthening its position in the North American market. In fact, LS Electric generated 400 billion won in revenue in North America alone, setting a new regional quarterly revenue record.
In line with growing North American demand, LS Electric is expanding investment in key production bases such as "LS Electric Utah" and the "Bastrop Campus." The company plans to accelerate its push into the North American market by expanding local production capacity and high-end product technology.
The company also showed growth in Europe, the Middle East, and ASEAN. In Europe, where renewable energy is expanding, revenue at its Spanish subsidiary rose 21% from a year earlier, centered on demand for power grid replacement. In ASEAN, revenue at its Vietnamese subsidiary grew 34% on the back of increased investment by global companies. Revenue at its Middle East subsidiary also rose 42%.
"Amid an explosive increase in demand for power infrastructure in North America and other global markets, orders centered on high-value-added products from distribution solutions to ultra-high-voltage transformers grew, achieving record results," an LS Electric official said. "We will also create results in future power solution businesses such as high-voltage direct current (HVDC) and low-voltage direct current (LVDC) distribution, accelerating the expansion of our global market share."
