PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩2,500 per share · Prices as of the 2026-10-02 close
Subsidiary earnings have entered record territory on AI data center and grid replacement demand, yet holding-company specifics such as a large minority interest, heavy capex and raw-material volatility remain in play.
Second-quarter 2026 consolidated revenue reached KRW 11.02tn with operating profit of KRW 595.6bn, a quarterly record, and first-half operating profit already exceeded the full-year 2025 figure of KRW 1,052.5bn.
Quarterly operating margin rose from about 3.0% in 2Q25 to 5.4% in 2Q26, with margin improvement outpacing top-line growth.
Combined order backlog of key affiliates stood at KRW 19.56tn at end-1H26, and LS ELECTRIC raised its annual order guidance from KRW 4tn to KRW 6-6.5tn.
Only about half of consolidated profit accrues to controlling shareholders: 2025 consolidated net profit was KRW 485.1bn versus KRW 270.8bn attributable to owners.
The debt-to-equity ratio rose from 170.3% in 2023 to 225.5% in 2025, while 2025 operating cash flow of KRW 206.3bn fell far short of operating profit, evidencing working-capital strain.
LS is the holding company of the LS Group spanning cables, power equipment, non-ferrous smelting and materials, with listed LS ELECTRIC and unlisted LS Cable & System, LS MnM and LS I&D forming the earnings core.
In a June 1, 2026 report, Daishin Securities presented its own estimated fair enterprise value composition as LS ELECTRIC 36%, LS Cable & System 35%, LS MnM 13% and LS I&D 6%.
In an August 18, 2026 report, NH Investment & Securities said it valued LS's net asset value at KRW 24.57tn, including KRW 15.01tn for the LS ELECTRIC stake and KRW 8.50tn for unlisted subsidiaries.
LS Cable & System focuses on extra-high-voltage underground and submarine cables plus bus duct power distribution systems for data centers, posting first-half 2026 revenue of KRW 4.52tn and operating profit of KRW 238.4bn.
It has built a turnkey structure with affiliate LS Marine Solution covering design, production, installation and maintenance, allowing combined product-and-installation delivery on offshore projects.
LS ELECTRIC handles switchgear, distribution equipment, extra-high-voltage transformers and automation, recording second-quarter 2026 revenue of KRW 1.58tn and operating profit of KRW 178.5bn for an 11.3% margin, with exports at 53% of sales.
LS MnM smelts copper concentrate into copper cathode, precious metals such as gold and silver, and sulfuric acid as the only copper smelter in Korea, and is expanding into battery materials including nickel sulfate.
LS I&D, centered on North American subsidiary Essex Solutions, supplies magnet wire for transformers and posted first-half 2026 revenue of KRW 3.23tn and operating profit of KRW 116.6bn, up 34% and 93% year on year.
Competitively, the group faces large European players in submarine and extra-high-voltage cables and domestic rivals in transformers and distribution gear, while presenting its vertical chain from copper smelting to transmission, transformation and distribution as a differentiator.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩7.9T | ₩235.6B | 3.0% |
| 2025Q3 | ₩8.1T | ₩257.1B | 3.2% |
| 2025Q4 | ₩9T | ₩255.3B | 2.8% |
| 2026Q1 | ₩9.5T | ₩476.1B | 5.0% |
| 2026Q2 | ₩11T | ₩595.6B | 5.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩17.5T | ₩670.9B | ₩451.6B | 3.8% | 11.3% | 202.7% |
| 2023 | ₩24.5T | ₩899.7B | ₩436B | 3.7% | 9.2% | 170.3% |
| 2024 | ₩27.5T | ₩1.1T | ₩237.3B | 3.9% | 5.2% | 198.3% |
| 2025 | ₩31.9T | ₩1.1T | ₩270.8B | 3.3% | 5.4% | 225.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On an annual basis, revenue expanded for three straight years from KRW 17.49tn in 2022 to KRW 24.48tn in 2023, KRW 27.54tn in 2024 and KRW 31.87tn in 2025.
Operating profit, however, rose from KRW 670.9bn in 2022 to KRW 899.7bn in 2023 and KRW 1,072.9bn in 2024 before easing to KRW 1,052.5bn in 2025, with operating margin slipping from 3.9% to 3.3%.
Net profit attributable to owners fell from KRW 451.6bn in 2022 and KRW 436.0bn in 2023 to KRW 237.3bn in 2024, then recovered to KRW 270.8bn in 2025, as minority interests took nearly half of the KRW 485.1bn consolidated net profit in 2025.
Quarterly data show a clear inflection from late 2025: revenue and operating profit went from KRW 7.85tn and KRW 235.6bn in 2Q25 to KRW 9.03tn and KRW 255.3bn in 4Q25, KRW 9.50tn and KRW 476.1bn in 1Q26, and KRW 11.02tn and KRW 595.6bn in 2Q26.
Quarterly operating margin climbed from about 3.0% in 2Q25 to 5.0% in 1Q26 and 5.4% in 2Q26, and first-half operating profit alone surpassed full-year 2025 operating profit.
Management attributed this to accelerating AI data center build-outs by global big tech and aging-grid replacement projects in North America and Europe, and said LS MnM benefited from firm copper cathode premiums and higher precious metal and sulfuric acid prices.
Owner-attributable profit is far more volatile than consolidated operating profit, however, having been compressed to KRW 65.5bn in 3Q25 and KRW 18.2bn in 4Q25 before recovering to KRW 155.9bn in 1Q26 and KRW 188.4bn in 2Q26.
On the balance sheet, liabilities grew from KRW 11.50tn in 2023 to KRW 17.32tn in 2025, lifting the debt-to-equity ratio from 170.3% to 225.5%.
Operating cash flow of KRW 206.3bn in 2025 was far below the KRW 858.1bn of 2024, suggesting that higher copper and other input prices plus order-driven working capital widened the gap between profit and cash.
End-demand is being driven simultaneously by AI data center power infrastructure and aging-grid replacement in North America and Europe, a combination the company describes as a power supercycle.
In submarine cables, demand for high-voltage direct current systems for long-distance, high-capacity transmission is rising quickly, and analysis suggests the basis of competition has shifted from cable performance toward project execution capability including installation experience and maintenance.
LS Cable & System says it has built an integrated delivery system spanning design, production, installation and maintenance through 525kV-class high-capacity products and cooperation with LS Marine Solution, and that it holds certifications from the nine major classification societies required for North American and European projects.
Domestically, large transmission projects such as the energy highway are advancing, and the company highlights its record of executing all of Korea's submarine and underground HVDC cable projects.
In power equipment, US utility and data center investment is lifting demand for switchgear and extra-high-voltage transformers, with LS ELECTRIC's transformer backlog building to KRW 3.35tn.
That said, in its June 1, 2026 report Daishin Securities noted a phase in which Korean power equipment and cable share prices fell sharply amid valuation burden versus global peers and flow concentration elsewhere, indicating that sector expectations had already been substantially priced.
Smelting has a different character: earnings volatility is high depending on copper smelting conditions and by-product prices such as precious metals and sulfuric acid, and in the same report Daishin assumed treatment charges would stay far below 2024 levels.
The result is a portfolio that mixes structural growth in power infrastructure with commodity and smelting cycle volatility under one roof.
The verifiable pillars disclosed by the company are order backlog and capacity timelines. Combined backlog at key affiliates was KRW 19.56tn at end-1H26, and an LS official told media it expects a solid second half if that backlog converts into revenue in sequence.
LS ELECTRIC booked KRW 2.08tn of new orders in 2Q26, up 243% year on year, and raised annual order guidance from KRW 4tn to KRW 6-6.5tn.
On facilities, LS Cable & System's submarine cable plant in Virginia is under construction targeting completion in the second half of 2027 and commercial production in the first quarter of 2028, while LS ELECTRIC's Utah site is being expanded roughly sixfold with a target start in early 2027.
LS was reported as of June 2026 to have set a plan to invest USD 3bn (about KRW 4.6tn) over five years in the Virginia plant, Utah and related sites.
On near-term revenue recognition, NH Investment & Securities said in an August 18, 2026 report that it expects the Donghae expansion to begin contributing to revenue from the fourth quarter of 2026, and Daishin Securities forecast in its June 1, 2026 report that HVDC submarine cable revenue for Europe would ramp from the fourth quarter of 2026.
In new businesses, LS MnM is pursuing a KRW 670bn battery materials complex in Onsan for nickel sulfate and related products targeting full production from early 2027, alongside a plan to build a 62,000-ton nickel sulfate system including Saemangeum expansion by 2029.
On governance, the group withdrew Essex Solutions' listing application to the Korea Exchange in January 2026, and at the March 2026 annual meeting management said it would continue a return policy combining dividends with treasury share cancellation.
Because most of LS's earnings come from listed and unlisted subsidiaries, the gap between consolidated profit and owner-attributable profit matters: 2025 consolidated net profit was KRW 485.1bn versus KRW 270.8bn attributable to owners, and of KRW 7,679.6bn in total equity, KRW 2,676.5bn was minority interest.
The shares trade at a premium to book value, while brokerages simultaneously argue a discount remains against their estimated net asset value.
NH Investment & Securities said in an August 18, 2026 report that the discount to its KRW 24.57tn net asset value estimate remained high at 58.9%, and that it maintained a buy rating with a target price of KRW 600,000. iM Securities said in a June 22, 2026 report that it raised its target price to KRW 570,000, citing the prospective ban on duplicate listings and expectations for treasury share cancellation; these are the brokerages' views, not KOSAI's.
The dividend yield sits below the KOSPI average, as the company has chosen a total-shareholder-return policy pairing dividends with treasury share cancellation rather than a high-payout approach, and raised its dividend by more than 50% versus the prior year.
Under the amended Commercial Act, the treatment of the 11.1% treasury stake would directly affect share count and per-share metrics, so the pace of profit recovery and execution of the return policy are the fork in the road for interpreting multiples.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Combined backlog at key affiliates stood at KRW 19.56tn at end-1H26. LS ELECTRIC posted a record KRW 2.08tn of quarterly new orders in 2Q26, raised annual order guidance to KRW 6-6.5tn, and grew backlog to KRW 7.00tn.
With quarterly operating margin improving from about 3.0% in 2Q25 to 5.4% in 2Q26, the pace at which backlog converts into revenue remains the key variable for further margin headroom.
LS Cable & System posted first-half 2026 revenue of KRW 4.52tn and operating profit of KRW 238.4bn on expanding extra-high-voltage submarine cable and US AI data center bus duct orders.
The company has built a turnkey structure with LS Marine Solution covering design, production, installation and maintenance, and in May 2026 said it was selected as preferred bidder for submarine cable supply and installation on the 1GW Haesong offshore wind project.
In July 2026 it announced it had become the first in Korea to pass pre-qualification testing for 525kV, 80-degree-class HVDC submarine cable.
On January 26, 2026 LS withdrew the Korea Exchange listing application of its US magnet wire affiliate Essex Solutions, describing it as a step to protect shareholders and rebuild trust.
Treasury shares were cancelled in lots of 500,000 in August 2025 and February 2026, cutting holdings to about 11.1% of shares outstanding.
The third amendment to the Commercial Act, passed in February 2026, requires existing treasury shares to be cancelled within 18 months, placing the fate of the remaining stake at the center of the shareholder-return debate.
Even as consolidated operating profit sets records, profit attributable to controlling shareholders does not rise proportionally. Of KRW 485.1bn in consolidated net profit in 2025, KRW 270.8bn accrued to owners, and minority interests accounted for KRW 2,676.5bn of KRW 7,679.6bn in equity.
Owner-attributable profit swings far more than consolidated operating profit, compressing to KRW 18.2bn in 4Q25 before recovering to KRW 188.4bn in 2Q26.
Liabilities grew from KRW 11.50tn in 2023 to KRW 17.32tn in 2025, lifting the debt-to-equity ratio from 170.3% to 225.5%. Operating cash flow of KRW 206.3bn in 2025 was well below the KRW 858.1bn of 2024, showing a gap between profit and cash.
The company disclosed net debt to EBITDA of 3.9 times and interest coverage of 4.9 times as of 2Q26, alongside a plan to invest USD 3bn over five years in the Virginia submarine cable plant and US power equipment sites.
LS MnM's earnings are widely seen as highly dependent on copper smelting conditions and by-product prices such as precious metals and sulfuric acid.
In the first half of 2026 firm copper cathode premiums and higher precious metal and sulfuric acid prices boosted profit, but the same drivers can reverse and shrink that contribution quickly.
In its June 1, 2026 report Daishin Securities assumed treatment charges would remain far below 2024 levels, underscoring that feedstock terms are not a constant for smelting margins.
Grid investment and offshore wind projects in North America and Europe are sensitive to government policy and permitting timelines. For large submarine cable projects, delays in final investment decisions push back revenue recognition.
Domestically, the pace of large transmission projects such as the energy highway directly affects orders and revenue timing.
LS cancelled treasury shares in August 2025 and February 2026, but the transfer of 387,365 treasury shares via a KRW 65bn exchangeable bond issued to Korean Air drew criticism that it strengthened control.
Media noted that a double-digit percentage of treasury shares remains even after cancellations, leaving uncertainty over their eventual use. Without consistent execution on treasury shares and dividends, governance disputes could recur.
In its June 1, 2026 report Daishin Securities referenced a phase in which Korean power equipment and cable shares fell sharply on valuation burden versus global peers and flow concentration elsewhere.
In sectors where growth expectations are heavily reflected, volatility tends to widen when quarterly results or orders fall short. Because LS is assessed as the sum of its subsidiaries, a slowdown in any one unit's orders or margins feeds directly into how the holding company's results are read.
LS ELECTRIC's third-quarter results and LS's third-quarter report. Watch the direction of the combined backlog, KRW 19.56tn at end-1H26, and whether the consolidated operating margin that reached 5.4% in 2Q26 holds.
Whether the Donghae plant's fifth-building expansion begins contributing to revenue, as projected in NH Investment & Securities' August 18, 2026 report, and whether HVDC submarine cable revenue for Europe ramps up, as forecast in Daishin Securities' June 1, 2026 report.
Whether LS MnM's KRW 670bn battery materials plant in Onsan enters full production and whether LS ELECTRIC's roughly sixfold Utah expansion begins operating. This could be the first quarter in which new-business revenue shows up in the numbers.
The board's dividend resolution and the annual meeting's stance on treasury shares. Since the third Commercial Act amendment passed in February 2026 requires existing treasury shares to be cancelled within 18 months, the focus is whether a concrete plan for the remaining 11.1% stake is presented.
A check on the completion schedule of LS Cable & System's Virginia submarine cable plant. The company targets completion in the second half of 2027 and commercial production in the first quarter of 2028, so any slippage gauges when North American submarine cable revenue begins.
LS's recent results quantify a phase in which power infrastructure demand is flowing into group-wide earnings. Second-quarter 2026 consolidated revenue of KRW 11.02tn and operating profit of KRW 595.6bn were quarterly records, and first-half operating profit already exceeded the KRW 1,052.5bn recorded for all of 2025.
Quarterly operating margin also rose from about 3.0% in 2Q25 to 5.4% in 2Q26, suggesting mix change worked alongside volume growth.
On the other side sit the holding-company structure in which minority interests take nearly half of profit, a debt-to-equity ratio that climbed from 170.3% in 2023 to 225.5% in 2025, and 2025 operating cash flow that came in far below operating profit.
The growth pillars are anchored to checkable dates: KRW 19.56tn of combined backlog at end-1H26, the Virginia submarine cable plant targeted for completion in the second half of 2027, the Utah expansion targeted for start-up in early 2027, and the Onsan battery materials plant targeted for production in early 2027.
At the same time, the smelting unit's sensitivity to raw material and by-product prices, plus execution on the remaining treasury shares and dividend policy, remain variables to verify. This report is for information purposes only and contains no buy or sell opinion or target price for any security.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.