LG Energy Solution announced its fourth quarter and full year 2025 financial along with key priorities for 2026.
For FY 2025, the company reported consolidated revenue of KRW 23.7 trillion, a 7.6% year on year decline. Operating profit reached KRW 1.3 trillion, up 133.9% year on year, with an operating margin of 5.7%, including North American production incentives. The improvement was supported by a better product mix cost efficiency and stable ESS sales in North America.
In Q4 2025, revenue stood at KRW 6.1 trillion, a 7.7% quarter on quarter increase. The quarter recorded an operating loss of KRW 122 billion, including KRW 332.8 billion in production incentives.
During 2025 LG Energy Solution optimized asset use by reallocating capacity between EV and ESS reducing new investments and improving utilization. The company expanded ESS production in North America secured over 140 GWh in ESS order backlog and surpassed 300 GWh in orders for its 46 Series cylindrical batteries.
For 2026, the company targets a mid teen to 20% year on year revenue increase and a mid single digit operating profit margin. It aims to secure over 90 GWh in new ESS orders and expand global ESS production capacity to more than 60 GWh, with over 80% located in North America. The EV portfolio will expand across LFP high voltage mid nickel LMR prismatic and 46 Series cylindrical batteries. LG Energy Solution also plans to grow in new areas such as robotics ships and UAM while reducing capex by over 40% year on year.
Leave a comment