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LG Energy Solution Posts Steep Q4 Loss, Sets 2026 Growth Drive in ESS and Small Batteries

A U.S. production tax credit softened results despite weak EV demand.

Overview

  • The company reported a fourth-quarter net loss of 772.5 billion won with an operating loss of 122 billion won on sales of 6.14 trillion won, down 4.8% from a year earlier.
  • LG Energy Solution booked a 332.8 billion won Advanced Manufacturing Production Credit under the U.S. Inflation Reduction Act, and excluding it the quarter’s operating loss was 454.8 billion won.
  • The quarterly loss was about 391% greater than the average market estimate, according to Yonhap Infomax.
  • For 2025, revenue fell 7.6% to 23.67 trillion won while operating profit rose 133.9% to 1.34 trillion won, supported by higher-margin products and a North American ESS ramp-up.
  • The company targets 15–20% revenue growth in 2026 by prioritizing small batteries and ESS, planning to lift ESS capacity to over 60 GWh with more than 80% located in North America and to reallocate some JV lines for ESS output.