South Korea · Delayed Price · Currency is KRW LG Energy Solution Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a 7.6% YoY revenue decline due to weaker EV demand, but ESS revenue surged 40% and operating profit more than doubled. For 2026, the company targets 10–20% revenue growth, triple ESS sales, and a 40%+ CapEx cut, focusing on operational efficiency and new battery technologies.
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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.
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Q1 2025 saw revenue of KRW 6.3 trillion and operating profit of KRW 374.7 billion, with strong U.S. auto battery sales and cost reductions offsetting shipment declines elsewhere. CapEx is being cut by up to 30% amid policy-driven demand uncertainty, while local production and ESS expansion are prioritized.
Fiscal Year 2024
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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.
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Q3 2024 saw 12% QoQ revenue growth and a 130% QoQ jump in operating profit, driven by higher shipments and improved utilization. The outlook for Q4 is stable, but 2025 guidance remains conservative amid market uncertainties and competitive pressures.
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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.