LS ELECTRIC (010120) Q2 2025 earnings summary

Executive summary

• Achieved continued growth in sales and operating profit, driven by strong overseas exports in the Electric business and stabilized profitability in Automation.

• The company operates in power equipment, automation, green energy, and metal businesses, with a global presence and 42 consolidated subsidiaries as of June 30, 2025.

• Major business segments include electricity, automation, metal, and IT, with electricity accounting for the largest share of sales.

• Maintained a surplus for 24 consecutive years, with active shareholder return policies.

• The company maintains a strong credit rating (AA- for bonds, A1 for commercial paper) and is listed on the KOSPI market.

Financial highlights

• 2Q 2025 sales reached KRW 1,193 bn, up 5.4% year-over-year and 15.6% quarter-over-quarter.

• Consolidated sales for H1 2025 were KRW 2,225,126 million, with operating income of KRW 195,907 million and net income of KRW 134,608 million.

• Operating profit for 2Q 2025 was KRW 109 bn, up 0.9% YoY and 24.4% QoQ; EBITDA at KRW 120 bn.

• Net income for 2Q 2025 was KRW 67.3 bn, nearly flat YoY and QoQ.

• Gross margin for H1 2025 was 21.7%, and for 2Q 2025 was 21.5%, slightly down from 21.9% in 1Q 2025.

Outlook and guidance

• Overseas sales expansion is a key driver, with North America CAGR at 51% from FY20-25.

• 2030 vision targets KRW 10 tn in overseas sales, with a CAGR of 21% from FY21-30.

• The company is expanding its portfolio in hydrogen fuel cell power generation and expects new revenue streams from this sector starting in H2 2025.

• Ongoing investments in production capacity and R&D are expected to support growth in smart energy and automation.

• Capacity expansion and M&A in transformers to meet global demand, with secured order backlog for five years.