LS Electric achieved its highest quarterly performance in history, becoming the first company in the industry to record operating profits for 100 consecutive quarters, driven by strong sales of high-value-added power solutions centered on North America.
LS Electric said Wednesday that it recorded revenue of 1.8778 trillion won and an operating profit of 233.5 billion won in the third quarter of this year. This represented increases of 54.4% and 131.7%, respectively, compared to the same period last year, delivering an earnings surprise that exceeded market expectations.
According to financial information provider FnGuide, the consensus estimate (average of securities firm forecasts) for LS Electric's third-quarter performance was revenue of 1.6748 trillion won and an operating profit of 193.9 billion won.
With this result, LS Electric has achieved consecutive quarterly operating profits for 100 quarters, from the fourth quarter of 2001 to the third quarter of this year. Among the top 500 companies by domestic revenue, only 12 have recorded profitability for 100 consecutive quarters.
The strong performance was driven by high-value-added projects such as power solutions for AI (artificial intelligence) data centers and ultra-high-voltage transformers. Sales of its core product, switchgear, increased by 120% year-on-year, while ultra-high-voltage transformer sales rose by 106%. Sales of Yangsan-type products, specifically distribution equipment, also grew by 32%, serving as a stable foundation for revenue.
Overseas, North American sales in the third quarter reached an all-time high of approximately 500 billion won, up about 25% from the previous quarter. Sales at subsidiaries in Spain and the Middle East also increased by approximately 120% and 61%, respectively, compared to the same period last year. The company plans to increase investment in local production hubs in North America, including Utah and Texas, to respond to demand for power infrastructure.
As of the end of the third quarter, the order backlog stood at approximately 7 trillion won, while new orders in the third quarter totaled about 1.6 trillion won. This was influenced by a series of large project wins, including power equipment for North American big tech data centers (230.9 billion won), ultra-high-voltage transformers for hyperscalers (181.2 billion won), and distribution solutions for Bloom Energy (185.3 billion won).
An LS Electric official stated, "This record of 100 consecutive quarters of profitability is a meaningful achievement resulting from the combination of a robust business portfolio ranging from medium- and low-voltage distribution to ultra-high-voltage transmission, consistent investment in new businesses, and success in expanding into global markets." The official added, "Based on a stable revenue foundation, as order expansion accelerates in response to the supercycle in AI-driven power infrastructure, we will open an era of long-term high growth."
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