LS Group's semiannual operating profit topped 1 trillion won for the first time, buoyed by expanded artificial intelligence (AI) data center investments by global big tech firms. Key affiliates including LS Cable & System, LS Electric, and LS MnM drove earnings growth by winning more orders in the power infrastructure businesses needed to build AI data centers.
LS said on the 14th that its consolidated operating profit for the first half of this year reached 1.0717 trillion won, up 98.4% from a year earlier. The figure surpassed last year's full-year operating profit (1.0526 trillion won) in just six months. Revenue rose 39% to 20.528 trillion won, and the combined order backlog of major affiliates expanded to 19.5554 trillion won.
LS also posted record quarterly results in the second quarter, with revenue of 11.0236 trillion won and operating profit of 595.6 billion won. The gains reflected growth in power infrastructure businesses such as cables, transformers, and electrolytic copper, driven by AI data center expansion and rising demand to replace aging power grids in North America and Europe.
LS Cable & System recorded revenue of 4.5232 trillion won and operating profit of 238.4 billion won in the first half. Expanded supply of ultra-high-voltage submarine cables and bus ducts, centered on North America and Europe, proved key. LS Electric also posted revenue of 2.9535 trillion won and operating profit of 305.1 billion won on the back of rising demand for ultra-high-voltage transformers for data centers.
LS MnM recorded operating profit of 365.3 billion won, up 427% from a year earlier, driven by higher prices for electrolytic copper and precious metals. LS I&D also improved its results on rising demand for specialty windings for transformers at its North American subsidiary Essex Solutions.
LS Group plans to accelerate the expansion of overseas production bases and investments in new businesses to sustain its growth. An LS Group official said, "Rather than resting on strong results driven by the power supercycle, we will expand domestic and overseas investments in our core and new business areas to build a foundation for continued growth."
