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JONBUR Research · Update note

LS Marine Solution · 060370 · Construction

LS Marine Solution: Q3 2026 Preliminary Operating Profit Rises 234.6% on Lower Revenue

Why this report

Written after:

LS Marine Solution reported preliminary Q3 2026 operating profit of ₩6.9B, up 234.6% from a year earlier, while quarterly revenue fell 4.3%. The result points to better margins than the thin ones in our initiation, but one quarter does not settle the profitability question, and the model still has no estimate.

Written Oct 21, 2026 · Data as of Oct 20, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-21 the company released preliminary consolidated results for July to September 2026. The figures are provisional and may differ from final numbers.

Revenue was ₩73.6B, down 4.3% from ₩77.0B a year earlier and down 22.9% from ₩95.4B in the prior quarter (April to June 2026).

Operating profit was ₩6.9B, up 234.6% from ₩2.1B a year earlier and up 12.3% from ₩6.1B in the prior quarter. That implies an operating margin of about 9.3% for the quarter, our calculation from the filed figures.

Net profit was ₩6.2B, up 92.3% year on year and down 11.2% from the prior quarter. Pre-tax profit from continuing operations was ₩8.3B, up 101.4% year on year.

For the first nine months, revenue was ₩221.9B (up 17.7%), operating profit ₩17.2B (up 102.7%) and net profit ₩19.3B (up 162.3%).

As background, on 2026-10-20 a filing showed the 5%+ holder LS전선 (LS Cable) raising its stake by 1.4 points to 70.0%. This is not the reason for this note.

What it changes for the thesis

Our initiation on 2026-10-13 described fast revenue growth but thin margins: operating margin fell from 18.5% in 2023 to 2.9% in 2025 and was 3.9% on a trailing basis. It said the data did not show growth turning into stronger profitability.

This result partly addresses that point. The nine-month operating profit of ₩17.2B already exceeds the full-year 2025 figure of ₩7.0B, and the quarterly margin of about 9.3% is well above the 2.9% for 2025.

But revenue fell in the quarter, both year on year and against the prior quarter, so the growth leg of the thesis was not confirmed this time. Free cash flow was negative at -₩43.4B in the earlier data, and the filing gives no cash flow figures, so that concern is unchanged. One preliminary quarter is not enough to call a lasting margin recovery.

What it changes for the valuation

The model has no estimate for this company, and the previous report had none either, so no model range per share (bear, base or bull) can be compared with the share price. The result does not change that.

The shares closed at ₩28,400 on 2026-10-20, with a market cap of ₩1,483.6B. The data pack shows a trailing P/E of 132.4, P/B of 2.3 and P/S of 5.3. These use trailing figures through H1 2026 and do not yet include this quarter's results, so they likely overstate the earnings multiple once Q3 is added.

For comparison, peer P/E ratios range from 3.6 to 22.7 (Daewoo E&C not available). The multiple remains far above peers even allowing for the stronger quarter.

Closing view

The evidence is mixed but leans somewhat better than at initiation. Profit more than tripled year on year and the margin is clearly above 2025 levels. Revenue declined, though, the figures are preliminary, cash flow data are not updated, and the valuation still depends on earnings continuing to grow well above today's level. With no model estimate, no comparison with the share price can be made. Final filed Q3 figures and cash flow will show whether the margin improvement holds.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 21, 2026Update noteEarningsLS Marine Solution: Q3 2026 Preliminary Operating Profit Rises 234.6% on Lower Revenue
  2. Oct 13, 2026InitiationStart of coverage (300 largest)LS Marine Solution: Rapid Revenue Growth, Thin Margins and a High Earnings Multiple

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information