Amid tailwinds from AI data centers, LS Cable & System’s order backlog nears 10 trillion won, a record high

[Financial News] LS Cable & System’s consolidated order backlog in the third quarter came close to 10 trillion won, reaching a record high. The record is attributed to the company’s accelerated push into the global transmission grid market, as rising demand driven by increased investment in U.S. AI data centers coincided with demand to replace aging power grids.
According to industry sources on the 8th, LS Cable & System’s consolidated order backlog in the third quarter totaled 9.8522 trillion won. That was an increase of 1.6567 trillion won (20.2%) from 8.1955 trillion won at the end of last year.
LS Cable & System’s standalone order backlog stood at 7.8705 trillion won, up 918.4 billion won over the same period.
Gaon Cable was the main driver of the increase in the order backlog. The backlogs of Gaon Cable and its subsidiaries surged by at least 300%, accounting for about 39% of the total increase. This was driven by a backlog of 676.5 billion won at LSCUS, Gaon Cable’s U.S. subsidiary.
LSCUS significantly expanded supplies of bus ducts and distribution cables in response to increased investment in U.S. AI data centers. It is establishing itself as a specialist supplier of power infrastructure for AI data centers, having signed long-term supply agreements with global big tech companies and, more recently, a distribution cable supply contract worth 120 billion won with a global cloud company.
The subsidiaries also contributed to backlog growth by targeting high-value strategic infrastructure markets.
LS Eco Energy’s order backlog reached 208.3 billion won, up 43% from the same period last year. The increase came as the company focused on high-value power infrastructure markets, including investing in production facilities for large-capacity bus ducts for AI data centers, with Vietnam as its production base.
LS Marine Solution’s subsea order backlog also rose 42% over the same period to 201.6 billion won. The company is strengthening its capabilities in installing long-distance, high-capacity submarine cables by securing large cable-laying vessels and improving their performance. It is also expected to benefit further as domestic offshore wind and West Coast HVDC grid projects get underway in earnest.
LS Materials also secured an order backlog of 74.9 billion won after signing a large-scale contract with a U.S. hydrogen fuel cell company. It is building a new growth pillar by expanding the use of ultracapacitors (UCs), which excel at supplying large amounts of power instantaneously and at high-speed charging and discharging, in AI data center (AIDC) power stabilization equipment and the hydrogen fuel cell sector.
LS Cable & System’s growing order backlog is seen as leading to a more diversified business portfolio, rather than simply reflecting increased demand for cables. Alongside its push into the global transmission grid market with extra-high-voltage and submarine cables, its subsidiaries are broadening their businesses across the power infrastructure sector—including AIDC power distribution equipment, submarine cable installation and power stabilization solutions—to build a stable portfolio.
An LS Cable & System representative said, “By combining our core business’s unrivaled cable technology with our subsidiaries’ capabilities in AI data center power infrastructure and installation, we have completed a comprehensive system for building power grids,” adding, “As order wins and earnings growth at our subsidiaries gain momentum, we expect the benchmarks the market uses to value LS Cable & System to rise significantly.”
[email protected] Park So-hyun Reporter