2Q26 Earnings – Order Momentum Continues to Accelerate; Q&A Summary

Research evidence excerpt

2Q26 Earnings – Order Momentum Continues to Accelerate; Q&A Summary

IdeaM

LS Electric 2Q26 Earnings Call – Q&A

Q1. Switchgear orders reached KRW1tn this quarter. Excluding the two projects

announced in April (approximately KRW900bn in total), could you elaborate on what

drove the remaining order intake?

A.

• Excluding the previously disclosed projects, the company continued to secure

approximately KRW500bn of new switchgear orders per month.

• Most of the incremental orders came from existing customers rather than entirely

new customer wins.

• However, management highlighted that it has recently secured new business from

a large US local customer as well as a global top-tier memory manufacturer.

• Initial deliveries have begun for the customer's US semiconductor fab project, with

meaningful room for further expansion over time.

• The remaining orders primarily represent follow-on orders and expansions from

existing projects.

Q2. Current lead times suggest deliveries extending through the end of this year and

into 1Q27. When should these orders begin contributing to revenue, and how much

upside could they provide to earnings?

• The recently secured switchgear backlog is expected to begin contributing to

revenue during 2H26.

• While the company has not officially revised its financial guidance, management

shared its internal IR view.

• Based on current order momentum, revenue could exceed the original KRW6tn

guidance by more than 10%, implying upside toward approximately KRW6.6tn.

• Operating margin could also improve from the original 9.7% guidance to around

11.5%.

• Management believes the current demand environment is likely to remain intact

over the next one to two years, rather than being a short-lived phenomenon.

Q3.