LS ELECTRIC Reports 51.7% YoY Increase in Q3 Operating Profit Amid Rising US Data Center Demand

According to Financial News, LS ELECTRIC achieved growth in both sales and operating profit in the third quarter of this year, driven by increasing demand for data centers in North America and power transformers. Notably, the order backlog for power transformers in the North American market reached a record high of KRW 1.9 trillion. The company plans to further expand production capacity to meet customer demand in a timely manner and strengthen profitability.
LS ELECTRIC announced on the 22nd that its consolidated sales for the third quarter reached KRW 1.2163 trillion, with operating profit at KRW 100.8 billion. Compared to the same period last year, sales and operating profit increased by 19.1% and 51.7%, respectively. Continued growth in North American data centers and power transformers within the company’s core global power business drove these results.
The automation business continued to improve quarterly sales by maintaining a management focus on operational efficiency and profitability-driven sales strategies. Overseas subsidiaries, particularly in the United States and Vietnam, also contributed to robust performance, resulting in upward trends in both sales and operating profit.
The power business has been securing orders mainly for high-profit projects, creating an environment for both qualitative and quantitative growth not only in the fourth quarter but also into next year.
By strengthening local sales operations in North America, the company secured new and additional orders for power transformers, increased orders for energy storage system (ESS) projects, and expanded its customer base by entering the advanced manufacturing power infrastructure market, including Big Tech data centers.
As of the third quarter, the total order backlog stood at approximately KRW 4.1 trillion, up KRW 200 billion from the previous quarter and continuing to grow. In particular, power transformers set a new record with a backlog of KRW 1.9 trillion, driven by new orders and customer expansion in the United States.
The second production building at the Busan Plant, which manufactures power transformers, is expected to be completed within the year. Starting next year, this expansion is projected to lead to increased orders, as well as growth in sales and operating profit due to enhanced production capacity.
A company representative stated, "From next year, we expect an additional annual sales increase of KRW 300 billion to KRW 400 billion, thanks to new orders for short lead-time projects that were previously difficult to accommodate, early deliveries resulting from alleviated production bottlenecks, and improved cost competitiveness through expanded integrated purchasing as production volume grows."
soup@fnnews.com Subin Lim Reporter