KOSDAQTransport & Logistics060370

LS Marine Solution

₩33,900▲ 3.67%2026-10-02 close

Market Cap

₩1.8T

Turnover

₩6.4B

Volume

190,000 shares

Shares out.

52.2M

PER

90.9×

PBR

2.6×

EPS

₩340

Dividend Yield

0.52%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩160 per share · Prices as of the 2026-10-02 close

Report overview

Subsea Grid Installation Monopoly, Profit Recovery Still Early

As the only operator of subsea cable-laying vessels in Korea, revenue has grown more than fivefold in four years, yet margins have not returned to past levels after a vessel retrofit and the cancellation of a large contract.

1
Consolidated revenue reached 244.2 billion won in 2025, more than five times the 42.8 billion won of 2022, but the operating margin fell from 18.5% in 2023 to 2.9% in 2025.
2
In Q2 2026 revenue hit a quarterly high of 95.4 billion won with operating profit of 6.1 billion won, marking a second consecutive profitable quarter after the operating loss of 1.5 billion won in Q4 2025.
3
In its August 5, 2026 first-half release the company put its consolidated order backlog at about 660 billion won, roughly three times 2025 annual revenue.
4
In April 2026 a 93.99 billion won Anma offshore wind installation contract was cancelled at the client's notice, showing that financing risk in domestic offshore wind can translate into actual order losses.
5
The retrofit lifting flagship vessel GL2030's cable capacity from 4,000 tons to about 7,000 tons was completed in July 2026, while a 13,000-ton class vessel is under construction for delivery targeted in the first half of 2028.

Business structure

LS Marine Solution is an installation specialist focused on laying and maintaining subsea power and telecom cables; formerly KT Submarine, it joined LS Group in 2023 when LS Cable & System acquired a stake.

The company is known as the only operator in Korea that owns and runs cable-laying vessels for extra-high-voltage subsea power cables. In 2024 it consolidated LS Buildwin, an underground cable installation subsidiary, broadening its scope to cover both subsea and onshore work.

According to Bloter, of the 188.4 billion won of cumulative revenue through the third quarter of 2025, underground cable work accounted for 130.0 billion won versus 58.3 billion won for subsea work, while consolidated revenue from transactions with LS Cable & System over the same period was 126.2 billion won.

In other words, the subsea business largely contracts directly with external clients, while the underground business leans more on installing projects won by LS Cable & System within the group.

Customers span KEPCO, domestic offshore wind developers, overseas utilities such as Taiwan Power Company, and big tech firms including Microsoft and Amazon Web Services that order subsea telecom links.

Its competitive core is integration of manufacturing and installation: LS Cable & System produces the cable and LS Marine Solution lays it, a turnkey structure that only a few global players such as Prysmian, Nexans and NKT are said to have.

Still, earnings are tightly linked to vessel operating days and project progress, so the availability of a single ship can swing a quarter. Per an August 26, 2026 filing, LS Cable & System said it plans to buy 936,037 common shares on the market for about 30 billion won between September 28 and October 27.

Earnings trend

Quarterly revenue · Operating profit

₩67B₩3.4B25Q2₩77B₩2.1B25Q3₩55.8B-₩1.5B25Q4₩52.8B₩4.2B26Q1₩95.4B₩6.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩42.8B-₩6.6B2022₩70.8B₩13.1B2023₩130.3B₩12.4B2024₩244.2B₩7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩67B	₩3.4B	5.1%
2025Q3	₩77B	₩2.1B	2.7%
2025Q4	₩55.8B	-₩1.5B	−2.7%
2026Q1	₩52.8B	₩4.2B	8.0%
2026Q2	₩95.4B	₩6.1B	6.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩42.8B	-₩6.6B	-₩12.1B	−15.4%	−10.8%	7.0%
2023	₩70.8B	₩13.1B	₩11.6B	18.5%	9.5%	19.7%
2024	₩130.3B	₩12.4B	₩13.2B	9.5%	6.3%	22.2%
2025	₩244.2B	₩7B	₩8.4B	2.9%	1.3%	17.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

The annual pattern shows revenue growth and margin erosion at the same time.

Revenue rose for four straight years, from 42.8 billion won in 2022 to 70.8 billion in 2023, 130.3 billion in 2024 and 244.2 billion in 2025, while operating profit swung from a 6.6 billion won loss in 2022 to a 13.1 billion won profit in 2023, then eased to 12.4 billion in 2024 and 7.0 billion in 2025.

The operating margin fell from 18.5% in 2023 to 9.5% in 2024 and 2.9% in 2025; in a March 2026 corporate value enhancement filing the company said profitability weakened temporarily because vessel retrofit work reduced project operating days.

Net profit of 8.4 billion won in 2025 was below the 13.2 billion won of 2024, while total equity expanded from 208.2 billion won in 2024 to 628.1 billion won in 2025, reflecting a rights offering.

Total liabilities stood at 111.0 billion won for a debt-to-equity ratio of 17.7%, a light balance sheet, and operating cash flow turned positive at 19.9 billion won in 2025 from negative 6.6 billion won in 2024.

Quarterly, revenue and operating profit were 67.0 billion won and 3.4 billion won in Q2 2025, 77.0 billion and 2.1 billion in Q3, and 55.8 billion with a 1.5 billion won operating loss in Q4, before recovering to 52.8 billion and 4.2 billion in Q1 2026 and 95.4 billion and 6.1 billion in Q2 2026.

First-half 2026 revenue totalled 148.2 billion won with operating profit of 10.3 billion won, which the company described on August 5 as a record half-year, citing the Taiwan TPC2 burial project, Asia-Pacific subsea telecom cable work, and LS Buildwin's underground projects in Singapore, Taiwan and Saudi Arabia.

Notably the Q1 2026 operating margin of roughly 8% exceeded the roughly 6% of Q2, showing that project mix drives margins more than revenue scale.

Net profit exceeded operating profit in both Q1 and Q2 2026, implying a contribution from non-operating items, so earnings quality should be assessed alongside operating-level profitability.

Industry analysis

End markets rest on three pillars: offshore wind, HVDC grids linking regions or countries, and subsea telecom links driven by the spread of AI data centres. The government has laid out offshore wind auction plans totalling 55GW through 2035 and is pushing the West Coast HVDC energy highway.

Phase one of the West Coast HVDC covers roughly 220km from Saemangeum to Seohwaseong with 500kV cable and converter stations, and in August 2026 the government confirmed preliminary feasibility study exemptions for 15 core transmission projects worth 14.2 trillion won, raising the possibility of earlier ordering.

Because onshore lines face public acceptance and siting disputes, subsea routes are structurally gaining weight.

In competition, cable manufacturing is contested among LS Cable & System, Taihan Cable and Iljin Electric, and the June 2026 phase-two underground HVDC tender for the East Coast to East Seoul line was split by lot; subsea installation, however, requires dedicated vessels and track records, leaving few domestic participants.

Abroad, Prysmian, Nexans and NKT operate as large players combining manufacturing and installation, so global mega-projects mean direct competition with them.

On the other hand, moves by the United States and the European Union to restrict Chinese suppliers in subsea cable infrastructure are cited as a relative opportunity for Korean firms.

On cycle positioning, domestic offshore wind varies widely by project across permitting, fixed-price contracts and financing, while HVDC is closer to a pre-tender phase, so the timing of recognised installation volume remains volatile.

Outlook

Management's stated direction is to improve profitability by expanding project operating days and to win more offshore wind orders, per the March 2026 corporate value enhancement filing.

A key enabler is the GL2030 retrofit completed in July 2026, which lifted cable capacity from 4,000 tons to about 7,000 tons and, the company says, allows continuous installation over stretches beyond 100km with fewer sailings.

In addition, a 13,000-ton class HVDC laying vessel under construction at Turkiye's Tersan Shipyard targets delivery in the first half of 2028, creating a two-track fleet for shallow coastal work and long-distance, high-volume projects.

Domestically, the Sinan-Ui and Taean offshore wind projects sit at preferred bidder stage, and the company has said contract signing and project schedules will determine when revenue is recognised.

For the West Coast energy highway it plans to bid in a consortium with LS Cable & System, which would manufacture HVDC cable while LS Marine Solution handles marine transport, laying and burial.

Overseas, it targets follow-on phases of Taiwan's TPC programme plus Vietnam and Singapore through joint bids with LS Cable & System and LS Eco Energy, and it has opened a sales office in Ho Chi Minh City.

That said, as the Anma case showed, contracts can be terminated for client-side reasons even after preferred bidder or contract stage, so the pace at which backlog converts into revenue depends heavily on factors outside the company's control.

LS Securities, in an April 28, 2026 report, forecast 2026 revenue of 290.1 billion won with operating profit of 11.5 billion won, and 2027 revenue of 460.7 billion won with operating profit of 49.9 billion won.

Valuation

PER

90.9×

PBR

2.6×

ROE

4.1%

EPS

₩340

BPS

₩12,111

Dividend per share

₩160

A 2025 rights offering lifted total equity from 208.2 billion won to 628.1 billion won, while profit shrank over the same period, failing to keep pace with the larger capital base.

As a result, the earnings-based price multiple calculated on the most recent four quarters of net profit sits well above both the KOSDAQ market average and the band in which the shares historically traded.

The multiple against net assets is less extreme because the rights offering enlarged the denominator, yet a premium over book value persists. Dividends remain modest, so their contribution to total return is limited.

In short, current metrics hinge less on confirmed past earnings than on scenarios for backlog conversion and margin recovery; for reference, LS Securities in an April 28, 2026 report presented a Buy rating with a target price of 41,000 won, which is not our own view.

The points to verify are the direction of quarterly operating margins and whether large projects convert into firm contracts.

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 2026-08-23

Bull factors

Sole Domestic Vessel Operator With Turnkey Structure

Subsea power cable installation is a field where bidding is difficult without dedicated vessels and proven execution, and the company is known as the only domestic operator of extra-high-voltage subsea power cable laying vessels.

The turnkey structure in which LS Cable & System manufactures and LS Marine Solution installs is cited as an order-winning advantage because clients avoid schedule slippage and split quality accountability.

Meritz Securities analyst Jang Jae-hyuk, quoted in April 2026 coverage, argued that clients inevitably prefer bundled awards, giving an edge to a group holding both manufacturing and laying capabilities. Globally, only a handful of players such as Prysmian, Nexans and NKT combine manufacturing and installation.

Faster Procedures For National Grid Projects

In August 2026 the government confirmed preliminary feasibility study exemptions for 15 core transmission projects worth 14.2 trillion won, including four HVDC links that form the West Coast energy highway: Sinhaenam to West Incheon, Sinhaenam to Dangjin, Saemangeum to Seohwaseong and Saemangeum to Yeongheung.

With a review process that normally takes about 18 months bypassed, observers see scope for earlier ordering and construction. The company has said it plans to bid for the work in a consortium with LS Cable & System. Delays to onshore lines caused by public acceptance issues are cited as a rationale for choosing subsea routes.

Fleet Expansion And First Overseas Track Record

The capacity-expanding retrofit of flagship vessel GL2030 was completed in July 2026, enabling deployment on large projects from the second half, while a 13,000-ton class HVDC vessel is being built for delivery targeted in the first half of 2028.

Overseas, a 2025 contract worth 15.8 million dollars to bury subsea cable at Taiwan Power Company's second offshore wind zone became the first overseas grid award for a Korean subsea installer, and the project was cited as a driver of first-half 2026 results.

Subsidiary LS Buildwin is broadening the overseas base with extra-high-voltage underground work in Singapore, Taiwan and Saudi Arabia. The consolidated backlog disclosed on August 5, 2026 was about 660 billion won, roughly three times 2025 revenue.

Bear factors

Margins Diverging From Revenue Growth

Revenue more than tripled from 70.8 billion won in 2023 to 244.2 billion won in 2025, yet operating profit fell from 13.1 billion won to 7.0 billion won and the margin dropped from 18.5% to 2.9%. In Q4 2025 the company posted an operating loss of 1.5 billion won on revenue of 55.8 billion won.

Operating profit recovered to 4.2 billion won in Q1 2026 and 6.1 billion won in Q2, but the Q2 margin was lower than Q1's, showing that larger revenue does not automatically bring better margins. In effect, revenue growth from consolidating a subsidiary has not translated directly into higher profitability.

Order Risk Exposed By A Large Cancellation

An April 27, 2026 filing disclosed the cancellation of a 93.99 billion won contract with Anma Offshore Wind for supply and installation of subsea and onshore export cables, equal to 72.15% of 2024 revenue. Press reports attributed the termination to the client's deteriorating finances and stalled stake-sale talks.

The company said it would review cooperation options, including a new contract, if the project restarts, but no timing has been set. The episode stands as a reminder that preferred bidder status or a signed contract may not translate into recognised revenue.

Gap Between Enlarged Capital And Profit

Total equity tripled to 628.1 billion won in 2025 from 208.2 billion won in 2024, reflecting a rights offering to fund capital expenditure. Net profit, however, fell to 8.4 billion won in 2025 from 13.2 billion won in 2024, highlighting the lag between a bigger capital base and earnings generation.

With the new laying vessel due in the first half of 2028, considerable time remains before that investment converts into revenue. If domestic offshore wind permitting slips or HVDC tenders are deferred in the meantime, filling vessel utilisation becomes the central task.

Risk factors

Project Concentration And Contract Changes

In contract-based installation, a few large projects account for much of quarterly revenue, so the cancellation or delay of a single contract feeds straight into results. The April 2026 Anma offshore wind termination is the latest case, with the cancelled amount equal to 72.15% of 2024 revenue.

Developer financing conditions, permitting timetables and fixed-price auction outcomes are all external variables. Even a sizeable backlog can leave quarterly volatility high if recognition slips.

Dependence On Vessel Operating Days

In a March 2026 filing the company said profitability weakened temporarily as vessel retrofit work cut project operating days, and the 2025 operating margin indeed fell to 2.9%. Laying work depends on sea weather, water depth and maintenance schedules, making quarterly margins hard to forecast.

With a limited fleet, the repair or retrofit of one ship weighs heavily on total results. This structural sensitivity persists until new vessels enter service.

Reliance On Policy And Tender Timing

Much of the growth story is tied to the West Coast HVDC energy highway and government offshore wind auction plans, so changes in policy schedules or tender delays can shake earnings visibility.

Phase one of the West Coast HVDC was expected by some observers to begin tendering in the first half of 2026, and the actual notice and award structure still need confirmation. KEPCO has previously split cable manufacturing awards by lot, leaving the allocation method for installation volumes an open variable. Overseas projects add local-content requirements plus currency and permitting risks.

What to watch next

September 28 to October 27, 2026
Watch whether LS Cable & System executes the on-market purchase of 936,037 common shares for about 30 billion won disclosed on August 26, 2026, and check the completion filing. A change in the parent's stake is factual information for reading governance and role allocation within the group.
Late October to mid-November 2026
The Q3 2026 results filing will show the first quarter with the retrofitted GL2030 fully deployed. The key checks are whether the operating margin improves versus Q2 rather than revenue scale alone, and how the backlog moves from the roughly 660 billion won level.
Fourth quarter of 2026
Track the tender notice and award structure for phase one of the West Coast HVDC and the outcome for the LS Cable & System and LS Marine Solution consortium. Whether ordering actually accelerates after the feasibility study exemption will determine when installation volume is recognised.
Q4 2026 to first half of 2027
Check whether preferred bidder status on the Sinan-Ui and Taean offshore wind projects converts into firm contracts, and whether the suspended Anma offshore wind project changes sponsor or restarts. The company said it would review cooperation options, including a new contract, if the project resumes.
Around February 2027
The full-year 2026 release will show how far the annual operating margin has recovered from 2.9% in 2025 and whether operating cash flow stayed positive. Progress on construction of the 13,000-ton class laying vessel due in the first half of 2028 is also worth checking.

Overall view

LS Marine Solution holds a scarce position as the only domestic operator of extra-high-voltage subsea power cable laying vessels, paired with a manufacturing-to-installation turnkey structure alongside LS Cable & System.

Revenue expanded quickly from 42.8 billion won in 2022 to 244.2 billion won in 2025, and first-half 2026 brought a record half-year with revenue of 148.2 billion won and operating profit of 10.3 billion won.

Yet the operating margin slid from 18.5% in 2023 to 2.9% in 2025, and the recovery so far spans only the first two quarters of 2026.

The April 2026 cancellation of the 93.99 billion won Anma offshore wind contract showed how developer financing risk can turn into an actual lost order, while the August confirmation of feasibility study exemptions for 14.2 trillion won of transmission projects raised the prospect of shortened tender timelines.

The balance sheet is light with a debt-to-equity ratio of 17.7%, but profit has yet to catch up with equity that tripled through the 2025 rights offering.

What matters from here is how quickly the backlog cited at about 660 billion won converts into revenue and operating profit, and whether the West Coast HVDC and domestic offshore wind contracts proceed on schedule. This report is for information purposes only and contains no buy or sell recommendation on any security.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.