Gaon Cable reported a 55.5% year-over-year increase in Q2 consolidated operating profit to 361.3 billion won, driven by expanding US AI data center and power grid investments that boosted cable and busduct demand. The South Korean cable manufacturer's Q2 revenue grew 35.1% to 869.39 billion won, supported by supply shortages and infrastructure investment in the US market. The company's US production subsidiary LSCUS is experiencing accelerated growth, with revenue projected to approximately double year-over-year as it supplies cables for AI data centers and solar power facilities, while Gaon Cable has entered the global top-five busduct suppliers through partnerships with LS Cable serving US Big Tech AI data centers.
Gaon Cable Reports 55% Q2 Operating Profit Growth
Gaon Cable disclosed on the 20th that its Q2 consolidated preliminary operating profit reached 361.3 billion won, representing a 55.5% increase compared to the same period last year. Revenue for the quarter totaled 869.39 billion won, marking a 35.1% growth. The performance improvement resulted from increased cable and busduct demand tied to US artificial intelligence data center expansion and renewable energy investment growth. The company's distribution cable exports to the US continue to increase steadily, benefiting from domestic supply shortages and expanding power grid investments in that market.
US AI Data Center Demand Drives Cable and Busduct Sales
LSCUS, Gaon Cable's US production subsidiary, has gained momentum in its growth trajectory. The facility's cable supply for AI data centers and solar power plants has expanded, with the company projecting approximately double the revenue compared to the previous year. Gaon Cable collaborates with LS Cable to supply busduct systems to US Big Tech AI data centers, establishing itself among the global top-five busduct suppliers. The company stated it will increase exports of high-value-added products to the US market and leverage its local production infrastructure to strengthen customer responsiveness and supply competitiveness.
Company Achieves Record H1 Revenue of 1.63 Trillion Won
Gaon Cable achieved record-breaking results for the first half of the year following its Q2 performance. The company's cumulative H1 operating profit reached 639.7 billion won, up 41.8% year-over-year. Revenue increased 27.3% to 1,632.97 billion won, marking successful expansion in business scale. These figures represent the highest half-year results in the company's history.
CEO Attributes Growth to US Power Infrastructure Investment
Jeong Hyeon, CEO of Gaon Cable, stated, "The US power infrastructure market is experiencing structural growth centered on AI data center and power grid investments." He added, "Based on headquarters' export expansion and LSCUS's growth, we will continue sales growth and profitability improvement in the second half."
FAQ
What was Gaon Cable's Q2 operating profit growth rate?
Gaon Cable's Q2 consolidated operating profit increased 55.5% year-over-year to 361.3 billion won, while revenue grew 35.1% to 869.39 billion won.
Why did Gaon Cable's revenue increase in Q2?
The revenue growth resulted from increased cable and busduct demand driven by US AI data center expansion and power grid investments, combined with supply shortages in the US distribution cable market and the company's expanding exports to that region.
