1. LS Marine Solution H1 2025 Performance: What Happened?

LS Marine Solution achieved remarkable revenue growth of 114% year-on-year, reaching KRW 111.4 billion in the first half of 2025. The acquisition of LS Buildwin significantly contributed to this growth, with the underground cable installation segment leading the charge. However, operating profit decreased by approximately 48% year-on-year to KRW 6.4 billion.

2. Why These Results?

The decrease in operating profit is primarily attributed to increased cost of sales and SG&A expenses, particularly a sharp rise in financial expenses. Significant cash outflow due to aggressive investments, including the construction of new Cable Laying Vessels (CLVs), is also notable. On a positive note, the company’s credit rating upgrade from BBB- to A- over the past three years reflects improved financial soundness and market confidence.

3. What’s Next? – Opportunities and Threats

  • Opportunities:
    • Growth in the offshore wind market is expected to positively impact LS Marine Solution’s submarine cable business.
    • Business portfolio expansion through the acquisition of LS Buildwin will provide a stable foundation for growth.
    • New business ventures, such as offshore power cable maintenance and Service Operation Vessel (SOV) projects, will contribute to securing future growth engines.
  • Threats:
    • Increasing financial expenses and investment burdens could pressure profitability.
    • Exchange rate volatility may negatively affect LS Marine Solution, which has a high proportion of overseas business.
    • Shortage of large CLVs may hinder future competitiveness.

4. What Should Investors Do? – Action Plan

LS Marine Solution holds high growth potential, but securing short-term profitability remains a challenge. Investors should carefully monitor the following factors and consider investment from a long-term perspective:

  • Performance of new business investments and profitability improvement
  • Cost management and financial structure improvement efforts
  • The possibility of benefiting from the growth of the offshore wind market