📊 LS Electric’s North American Mega-Deal: A Check-In Between the Chart and Earnings - 2026.10.19

Well now, it’s me, Onion~ ☕ Grab a cup of coffee and let’s take a look together. The key story this time is LS Electric’s North American order, but even with news of a mega-deal, the chart still seems a little hesitant to smile, which makes it all the more interesting.

The mega-deal, in numbers 🔥

On the 19th, LS Electric announced that on the 16th, local time, it had signed a long-term supply agreement (LTA) for data center power distribution equipment with a U.S. Big Tech company, worth approximately 125,230,000 USD(168,900,000,000 KRW) ^[1]. The contract runs for two years, from 2027 to 2028 ^[1]. Another article reporting the same news described it as an order for power distribution solutions for AI data centers ^[2], and said the two companies are also discussing ways to expand the range of products supplied ^[3]. Well, well~ Our power equipment has planted its flag at a North American data center. What stands out is that this isn’t a one-off contract—the term is set at two years.

So why is the chart acting like this?

Here’s the interesting part. The closing price on October 15 was ₩217,000, down 12.32% for the day. It then rebounded to ₩228,500(+5.30%) on the 16th and ₩232,000(+1.75%) on the 19th. In other words, it’s hard to say the stock shot up all at once on the strength of a single order announcement. Onion’s take is that the market is looking first at how much of the contract value will actually show up in earnings, rather than the order amount itself. I’m usually among the first to react when macro tailwinds emerge, but this time the chart seems to be telling us to pause for a beat, which makes me want to look more closely.

The macro picture

Several articles point to the same relationship: as investment in AI data centers grows, demand for transformers and power distribution equipment grows alongside it ^[6]. However, the provided descriptions don’t specify the supply chain risks, so I won’t add anything on that front. The view that transformer demand in the U.S. is rising rapidly and operating profit is expected to increase sharply comes from securities analysts. That’s a forecast from those analysts, not a number confirmed by the company ^[4]. Still, the direction looks bullish. The same article also notes that exchange rates and delivery schedules can create differences in earnings performance, so keep in mind that demand may be hot while the pace at which it appears in the numbers can vary ^[4].

Where does holding company LS fit in?

In an interview with LS Chairman Koo Ja-eun, he discussed how the value chain—from copper at LS MnM and transmission cables at LS Cable & System, to subsea construction at LS Marine Solution and transformers and switchgear at LS Electric—has been growing together ^[5]. The phrase “Beyond a boom for the right hand, it’s time for the left hand to make a decisive move” also caught my eye. However, the article text is cut off, so I can’t verify specific earnings figures, and I’ll hold off on discussing numbers here. This is an interesting point for the holding company, since the key is the picture of several subsidiaries moving together.

Onion thinks the bullish scenario is clear if the order momentum translates properly into earnings. But exchange rates, delivery schedules, and subsidiary performance remain potential obstacles. Here’s a dad joke: for power equipment stocks to keep going strong, the “electricity” has to keep flowing properly~ ⚡ So the biggest question right now is how this order will show up in the next earnings figures. When we get an answer, let’s talk about it again.

📰 Reference News (6)

1

LS Electric signs long-term supply contract for North American data center power distribution equipment worth 120,000,000 USD

네이버뉴스 · 2026.10.19

📰 View original

2

[Newsworker_LS Electric] Supply contract worth 168,900,000,000 KRW with U.S. Big Tech… Wins AI data center switchgear order

네이버뉴스 · 2026.10.19

📰 View original

4

Transformers flying off the shelves in the U.S.… Earnings diverge with ‘exchange rates and delivery schedules’

네이버뉴스 · 2026.10.18

📰 View original

5

LS Chairman Koo Ja-eun: Beyond a ‘boom for the right hand,’ it’s time for a ‘decisive move by the left hand’

네이버뉴스 · 2026.10.18

📰 View original

6

[5 Questions, 5 Answers] CoreWeave’s ‘debt warning’… Eyes on whether Korea’s AI supply chain is safe, too

네이버뉴스 · 2026.10.19

📰 View original