LG Energy Solution (373220) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose to 6,878 billion KRW, up slightly quarter-over-quarter, driven by increased ESS production in Michigan and new product launches for EV cylindrical and IT pouch batteries.

• Operating profit improved to 601 billion KRW, 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, representing a 9.4% margin, a significant increase from 91 billion KRW in Q2 2025.

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.

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

• Cash and cash equivalents at quarter-end were 5,324 billion KRW.

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.

• 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.