LG Energy Solution (373220) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 28% QoQ to KRW 9,643,433m, driven by ESS growth, higher high-voltage Mid-Ni EV pouch shipments and continued 21/46-series cylindrical supply.

• Q3 operating income was KRW 756,005m, up from KRW 113bn in Q2; 9M operating income fell to KRW 661,552m and net loss reached KRW 1,569,584m.

Financial highlights

• Q3 gross profit was KRW 2,263bn, gross margin 23.5%, operating margin 7.8% and EBITDA KRW 1,972bn; net loss was KRW 296,906m.

• Q3 non-operating loss was KRW 987.2bn; loss before tax was KRW 231.2bn.

• 9M gross profit was KRW 5,049,764m; SG&A was KRW 4,388,212m, finance costs KRW 2,354,244m and derivative losses KRW 804,559m.

• North America production incentives were KRW 416.9bn in Q3, with ESS-led volume growth cited as the driver.

Outlook and guidance

• Q4 revenue is expected to grow ~10% QoQ and ESS shipments ~40% QoQ; operating profitability is expected to decline slightly as one-off gains end and Honda JV ESS operations add initial fixed costs.

• 2027 ESS volume is expected to grow meaningfully; North American ESS capacity is planned to exceed 70 GWh by end-2027, including prismatic lines.

• North American cylindrical capacity targets 10 GWh by end-2026 and 20+ GWh by end-2027; 46-series production is planned by end-2026 for awarded projects.

• LFP Tabless 2170 mass production is targeted for H1 2027; sodium-ion ESS samples are planned within 2026, with North American test shipments in 2027.

• Long-term EV and ESS demand is expected to benefit from affordability, renewables and power needs from big tech and AI, though customer production plans and orders remain variable.