LS Eco Energy posts 7% operating margin, outpacing industry average
An aerial view of LS Eco Energy's production facility in Vietnam / Courtesy of LS Cable
LS Eco Energy is demonstrating clear profitability differentiation, posting an operating margin of around 7 percent in 2025, well above the domestic cable industry’s average of 3 to 4 percent.
The cable industry is widely regarded as a low-margin business, as raw materials — particularly copper — account for a large share of manufacturing costs, limiting operating profitability.
Against this backdrop, LS Eco Energy’s above-average margin is being viewed by the market not as a one-off earnings boost, but as evidence of structural profitability gains driven by a more advanced business portfolio.
The improvement has been supported by growth in extra-high-voltage power cables and expanding overseas supply by LS Eco Energy, particularly in Europe and North America.
Extra-high-voltage cables have high technological entry barriers and are typically secured through project-based contracts, allowing for relatively stronger margins.
In addition, the company’s rare earth metals and submarine cable businesses are viewed as high-value-added segments capable of delivering double-digit operating margins.
Rare earth materials are strategic resources essential for electric vehicles, robotics and defense industries, and are expected to offer both strong growth and profitability amid the ongoing global supply chain realignment.
The submarine cable business is also projected to deliver long-term growth and profitability, fueled by expanding global power grid investments and the rapid growth of the offshore wind market.
Industry sources say LS Eco Energy has been reviewing plans to build a submarine cable plant in Vietnam, but has recently broadened its investment options to include North America and the United Kingdom, where market potential is considered strong.
“The cable industry is rapidly evolving toward higher value-added segments amid expanding power grid and data infrastructure investments,” an industry official said. “Companies that secure new growth drivers are expected to see both profitability and growth improve.”