LS posted first-half operating profit of 1.07 trillion won, exceeding last year’s full-year result in six months. LS, the holding company of LS Group, said on Thursday it recorded second-quarter revenue of 11.02 trillion won and operating profit of 595.6 billion won. That was up 40 percent and 153 percent, respectively, from a year earlier, and marked record highs on a quarterly basis.

On a first-half basis, operating profit of 1.07 trillion won surpassed last year’s full-year operating profit of 1.05 trillion won. First-half revenue also rose 39 percent from a year earlier to 20.53 trillion won.

Growth was driven by expansion of AI data centres by global big tech companies and power-grid replacement projects in North America and Europe. LS provides integrated solutions across the entire power-infrastructure process, from copper production to transmission, substation and distribution. As of the end of the first half, LS Cable & System and LS Electric had a combined order backlog of about 19.56 trillion won.

By affiliate, LS Cable & System benefited from expanded supplies of extra-high-voltage submarine cables and orders for bus ducts for U.S. AI data centres. LS Electric posted strong results on orders for AI data centre power-equipment projects and improved profitability of extra-high-voltage transformers. LS MnM’s operating profit rose 427 percent from a year earlier on stronger copper premiums and higher prices for precious metals and sulphuric acid products, while LS I&D’s operating profit increased 93 percent due to a surge in demand for special windings for transformers at its North American unit Essex Solutions.

The debt ratio is rising slightly due to large-scale investment, but the company is maintaining financial stability. As of the second quarter, net debt to EBITDA stood at 3.9, and the interest coverage ratio was 4.9.

An LS official said, "In response to the power supercycle, we will reinvest at home and abroad in our core and new business areas to establish the foundation for the group’s sustainable growth." The official added, "Through stable risk management and sound management, we will also secure financial health that can respond to any market volatility."