South Korea · Delayed Price · Currency is KRW LG Energy Solution Earnings Call Transcripts
Fiscal Year 2026
-
Q1 2026 saw a 1% revenue increase to KRW 6.6 trillion, but operating losses widened due to ramp-up costs and weak North American EV demand. ESS revenue surged, with capacity set to reach 50 GWh in North America by year-end, and topline growth of 15–20% is expected for 2026.
Fiscal Year 2025
-
2025 revenue fell 7.6% YoY due to weaker EV demand, but ESS revenue surged 40% YoY, boosting annual operating profit by 133.9%. For 2026, revenue is targeted to grow 10–20% YoY, with ESS sales expected to more than triple and CapEx cut by over 40%.
-
Second quarter momentum remains strong, but U.S. policy changes are expected to slow EV demand in the second half. North American ESS growth is robust, with a record order book and capacity expansion underway, while cost efficiency and supply chain flexibility are prioritized.
-
Q1 2025 saw revenue of KRW 6.3 trillion and operating profit of KRW 374.7 billion, with strong cost controls and a significant North American tax credit. Outlook remains cautious due to tariff volatility and conservative OEM inventory, with focus shifting to ESS and operational efficiency.
Fiscal Year 2024
-
2024 saw a 24% revenue decline and a 73% drop in operating profit, driven by EV market volatility and lower metal prices, despite strong North American sales. The company expects 5%-10% revenue growth in 2025, with CapEx reduced by up to 30% and a gradual demand recovery from Q2 onward.
-
Q3 2024 saw 12% QoQ revenue growth, a 130% jump in operating profit, and strong net income, driven by shipment expansion and new supply contracts. Outlook for Q4 and 2025 is cautious amid market uncertainties, with CapEx set to decrease and focus shifting to efficiency.
-
Q2 2024 saw slight revenue growth and improved operating profit, driven by North American EV and ESS demand, but annual revenue guidance was revised down over 20% YoY due to weak ASPs and slower shipment growth. Strategic CapEx and operational efficiency measures are being prioritized.