LG Energy Solution (373220) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose to 6,878 billion KRW, with cumulative consolidated revenue of KRW 17,530,276 million and operating income of KRW 1,468,141 million for the nine months ended September 30, 2025, driven by increased ESS production, new product launches, and a global footprint in EV, ESS, and small battery markets.

• Operating profit improved to 601 billion KRW in Q3, with margin rising to 10.5% from 8.8% in Q2 2025, despite a reduction in North America production incentives.

• Net income reached 536 billion KRW in Q3, but for the nine months, there was a net loss attributable to owners of parent of KRW -196,006 million.

• Maintains a single business segment focused on energy solutions, with major investments in R&D and global expansion.

• Invested KRW 8 trillion in new and expanded facilities during the period.

Financial highlights

• Gross profit for Q3 2025 was 1,447 billion KRW, with a gross margin of 25.4%, up from 18.0% in Q2 2025; gross margin for the nine months was 19.6%.

• EBITDA for Q3 2025 was 1,519 billion KRW, with an EBITDA margin of 26.6%.

• Cash and cash equivalents at quarter/period end were about 5,324 billion KRW.

• Total assets: KRW 67,010,378 million; total equity: KRW 29,737,224 million.

• Operating income for the nine months was KRW 1,468,141 million, up from KRW 575,387 million for full year 2024.

Outlook and guidance

• Order backlog for ESS reached 120GWh by end of Q3, with new long-term contracts secured in the U.S. residential and grid ESS markets.

• Expects continued growth in EV and ESS battery demand, driven by global electrification trends and renewable energy expansion.

• Strategic focus on expanding into new business areas such as BaaS (Battery-as-a-Service) and EaaS (Energy-as-a-Service).

• Continued growth in ESS demand is expected, driven by policy stability and increased power needs from AI and data centers.

• EV demand faces short-term slowdown due to subsidy expirations, but mid- to long-term growth is supported by eco-friendly policies and expansion of affordable EV models.