LS Eco Energy (229640.KS), a subsidiary of LS Cable & System, posted its best-ever first-half results this year. The improvement was driven by expanded sales of core power infrastructure products such as extra-high-voltage cables and busducts, supported by rising global demand for artificial intelligence (AI) data centers.
LS Eco Energy reported second-quarter revenue of 350.3 billion won on a preliminary basis, the company said in a regulatory filing on the 5th. That marked 40% growth from the same period a year earlier. Combined with the first quarter, first-half revenue reached 635.8 billion won, a record high for any first half. Second-quarter operating profit was 25.2 billion won, up 7% from a year earlier.
As a result, LS Eco Energy expects its annual revenue to surpass 1 trillion won for the first time this year, following 960.1 billion won last year.
LS Eco Energy said demand for its flagship products, including extra-high-voltage cables and busducts, has grown significantly as big tech companies race to build AI data centers. Exports rose particularly in Europe, where AI data centers from big tech companies are concentrated and demand for high-efficiency power infrastructure for renewable energy is also growing.
Busduct sales tripled from the same period a year earlier. LS Eco Energy's revenue increased as infrastructure investment expanded not only in Europe but also in Southeast Asian countries such as Malaysia and Indonesia, which serve as AI hubs.
LS Eco Energy also plans to mass-produce 400-kilovolt (kV) extra-high-voltage cables next year and make a full-scale entry into the North American market. The company is also pursuing business expansion into rare earth metal products such as permanent magnets, in cooperation with Australia's Lynas, the world's largest rare earth producer excluding China.
"Growth centered on high-value products such as extra-high-voltage cables and busducts is now in full swing," LS Eco Energy CEO Lee Sang-ho said. "We will advance our power business and grow rare earths into a new growth pillar to sustain the growth of revenue and profit."
