An aerial view of Gaon Cable's Gunpo facility. [Gaon Cable]
An aerial view of Gaon Cable's Gunpo facility. [Gaon Cable]

LS Cable's major subsidiaries all posted record earnings in the first half of this year, the company announced Tuesday.

An LS Cable official said growing demand for cables and bus ducts, driven by rising investment in AI data centers and global power grids, contributed to the results.

Gaon Cable led the way, reporting first-half consolidated sales of 1.63 trillion won ($1.15 billion) and operating profit of 64 billion won — up 27.3 percent and 41.8 percent, respectively, from the same period last year. Its operating profit margin also improved, rising from about 3.5 percent in the first half of last year to 3.9 percent this year.

Growth at Gaon Cable was driven by its US business, where expanding investment in AI data centers, solar power complexes and power grids boosted demand for the company's distribution cables and bus ducts. Its US production subsidiary, LSCUS, is also expected to post a sharp increase in sales on the back of stronger demand for AI data center and renewable energy products. Gaon Cable plans to extend its momentum by expanding into the AI power infrastructure market.

LS Eco Energy posted first-half sales of 635.8 billion won and operating profit of 45.4 billion won, up 32.8 percent and 16.5 percent, respectively, year on year. Its operating profit margin of 7.1 percent was the highest among the three subsidiaries. High-value products — including extra-high-voltage cables for Europe and bus ducts for AI data centers — drove the results.

LS Marine Solution, the group's submarine cable installation subsidiary, also saw revenue and profit grow in tandem. It reported first-half consolidated sales of 148.2 billion won, operating profit of 10.3 billion won and net profit of 13.1 billion won — increases of about 33 percent, 61 percent and 217 percent, respectively, from a year earlier. Its operating profit margin rose from about 5.7 percent in the first half of last year to 7 percent this year.

Submarine cable laying at an offshore wind farm in Taiwan and undersea telecommunications cable installation projects across the Asia-Pacific region drove the strong performance. The company's order backlog stands at around 660 billion won, roughly three times its full-year sales for last year.

Combined, the three subsidiaries generated first-half sales of approximately 2.42 trillion won and operating profit of approximately 119.7 billion won. Industry observers credit the group's competitiveness to its integrated power infrastructure value chain — combining Gaon Cable and LS Eco Energy's global production and sales capabilities with LS Marine Solution's expertise in submarine and underground cable installation.

"As global power infrastructure investment expands — spanning AI data centers, renewable energy and the replacement of aging grids — the growth of LS Cable's key subsidiaries is expected to continue," an industry official said.


yeongdai@heraldcorp.com