LS ELECTRIC (010120) Q3 2024 earnings summary

Executive summary

• Marked its 50th anniversary with continued leadership in smart energy and global expansion.

• Revenue for the first nine months of 2024 was ₩3,192.3 billion, down from ₩4,230.5 billion in 2023, with operating income at ₩269.8 billion and net income at ₩179.5 billion.

• Experienced a temporary decline in Q3 2024 sales and operating profit due to project timing, seasonality, and slow upstream recovery.

• Major investments included facility expansions and acquisitions, such as the KOC Electric stake and Burnley Widow Hill ESS project.

• Maintains a stable financial structure and active shareholder return policy, with dividends over 40% of separate net income.

Financial highlights

• Q3 2024 sales were KRW 1,021bn, down 0.1% year-over-year and 9.8% sequentially.

• Operating profit for Q3 2024 was KRW 66bn, down 5.2% year-over-year and 39.4% sequentially.

• Net income for Q3 2024 was KRW 35bn, down 13.5% year-over-year and 45.7% sequentially.

• EBITDA margin for Q3 2024 was 8.4%.

• Basic EPS: ₩5,968; cash and equivalents: ₩503.4 billion; total assets: ₩3,993.7 billion.

Outlook and guidance

• Order backlog increased 26% year-over-year, supporting future growth.

• Expansion of overseas business, especially in North America, with a vision to reach KRW 8.3tn in sales by 2030.

• Focus on expanding EV relay, renewable energy, and smart grid businesses.

• Continued investment in R&D and facility upgrades, including new capacity for high-voltage transformers.

• Guidance emphasizes growth in overseas markets and digital transformation.