LS Eco Energy said it posted an operating margin of around 7 percent in 2025, demonstrating a differentiated profit structure.
The cable industry is generally considered to have limited profitability, as raw materials — particularly copper — account for a large share of manufacturing costs. As a result, most Korean cable-makers maintain operating margins of around 3 to 4 percent.
Against this backdrop, LS Eco Energy’s above-average profitability reflects not just improved performance, but a structural shift in its business portfolio.
The margin improvement has been driven by a focus on extra-high-voltage power cables and expanded overseas supply, particularly in Europe and North America. Such cables, which have high technological barriers to entry and are typically secured through project-based orders, tend to offer higher margins.
In addition, the company’s push into rare earth metals and subsea cable businesses is expected to further enhance profitability.
Rare earth materials are essential for key industries such as electric vehicles, robotics and defense, offering both strong growth potential and profitability amid global supply chain realignment.
Meanwhile, the subsea cable business is also expected to deliver solid mid- to long-term growth, supported by expanding global power grid investments and the growth of offshore wind markets.
According to industry sources, LS Eco Energy had been reviewing an investment in a subsea cable plant in Vietnam, but has recently broadened its options to include high-potential markets such as North America and the United Kingdom.
An industry official said the cable sector is rapidly shifting toward high-value-added segments amid the expansion of power grids and data infrastructure.
jwjeon7625@heraldcorp.com
