LS Electric Posts 389.7 Billion Won Operating Profit Last Year, Up 20% from Previous Year

Surging Demand for Power Equipment Driven by the AI Boom
"Record-High Results on Both Annual and Quarterly Basis"

LS Electric has reported a "surprise earnings" result that exceeded market expectations. On January 23, LS Electric announced in a regulatory filing that its consolidated operating profit for the previous year was provisionally tallied at 389.7 billion won, a 19.9% increase compared to the previous year.

Revenue reached 4.5518 trillion won, up 7.6% year-on-year. Net profit rose by 16.6% to 242.2 billion won.

LS Electric Cheongju Smart Factory exterior. Photo by LS Electric

Operating profit for the fourth quarter was 119.9 billion won, a 76.1% increase from the same period last year. Revenue and net profit for the quarter were 1.3595 trillion won and 62.8 billion won, respectively.

Both revenue and operating profit surpassed market forecasts by more than 30%. This was due to a global surge in investments in AI data centers as the era of artificial intelligence (AI) unfolds, which in turn drove up demand for essential power equipment. It is known that power equipment accounts for about 8% of the total investment in AI data centers.

An LS Electric representative stated, "Both on an annual and quarterly basis, these are record-high results," explaining that "the increase is a result of rising demand for AI data centers both domestically and internationally."

LS Electric, recognized as a leader in "distribution solutions," invested 160 billion won to expand its production capacity for ultra-high voltage transformers. The company is investing 100.8 billion won to build a new factory and add two vacuum pressure drying (VPD) units on idle land at its Busan site. In addition, it spent 59.2 billion won to acquire KOC Electric, a domestic small and medium-sized enterprise, to strengthen its technological capabilities. LS Electric also established a distribution system production line at its first U.S. base in Bastrop, Texas. Production capacity, which currently stands at about 200 billion won, is expected to expand to 800 billion won after the end of this year.

This content was produced with the assistance of AI translation services.