LS ELECTRIC (010120) Q1 2025 earnings summary

Executive summary

• Achieved stable sales and profit growth in 1Q 2025, with strong overseas performance in Electric and a turnaround in Automation from Q4 2024.

• Revenue for Q1 2025 was KRW 1,032.1 billion, with operating income of KRW 87.3 billion and net income attributable to owners of the parent at KRW 69.9 billion, reflecting stable performance across core business segments.

• Newly acquired subsidiaries contributed to sales but led to a slight decrease in consolidated operating profit margin.

• The company operates in electricity, automation, metal, and IT segments, with electricity accounting for 96% of Q1 sales, followed by metal (16.7%), automation (15.5%), and IT (3%).

• Major subsidiaries and affiliates contributed to consolidated results, with 42 consolidated entities at period-end.

Financial highlights

• 1Q 2025 consolidated sales: KRW 1,032.1 bn (down 0.6% YoY, down 24.1% QoQ).

• Operating profit: KRW 87.3 bn (down 6.9% YoY, down 27.2% QoQ); OP margin at 8.5%.

• Net income: KRW 69.9 bn (down 15.5% YoY, up 7.3% QoQ).

• EBITDA: KRW 99 bn (down 4.1% YoY, down 24.3% QoQ); EBITDA margin at 9.0%.

• Gross profit margin improved to 21.9% in 1Q 2025.

Outlook and guidance

• Electric business expects OP margin rebound from Q2, driven by HVTR/SWGR growth and new US orders.

• Automation segment anticipates gradual recovery, with profitability-focused strategy and strong US market momentum.

• Global expansion, especially direct-entry in the US, is a key strategic focus.

• The company continues to focus on expanding its presence in global power infrastructure, automation, and green energy markets.

• Ongoing investments in R&D and production capacity, including new facilities and technology upgrades, are expected to support future growth.