LG Energy Solution’s Preliminary Third-Quarter Operating Profit Reaches 756 Billion Won
Key Facts
LG Energy Solution said on October 8 that its preliminary operating profit for the third quarter of 2026 was 756 billion won, up 25.7% year on year. The company estimated revenue for the period at about 9.6 trillion won, up 59% from the third quarter of the previous year. The preliminary figures show annual growth in revenue and operating profit, but the reported profit includes U.S. tax credits. The company had said the published results were preliminary and that detailed results were scheduled for November 3, 2026. The preliminary report therefore combines strong sales growth with a tax effect that influences how operating profitability is assessed.
LSEG SmartEstimate put analysts’ average forecast for operating profit at 309 billion won before the preliminary results were released. The reported figure of 756 billion won was above that estimate. However, the company said operating profit would have been 339.1 billion won excluding credits under the U.S. Inflation Reduction Act. That adjusted figure is below the reported preliminary operating profit and shows the scale of the credits’ effect on the quarter’s result. The comparison with analysts’ forecasts concerns preliminary profit that includes the credits, while the 339.1 billion won figure shows profit after excluding them.
The company attributed preliminary quarterly growth to shipments of energy storage systems to North America, along with sales of mid- and low-priced pouch batteries to Europe. This identifies specific markets and products behind the increase, rather than linking it to broad growth across the battery sector. Meanwhile, Reuters reported that the company faces a prolonged slowdown in electric vehicle demand and is expanding its energy storage systems business to counter weakness in the EV market. North American storage shipments therefore stand out in the results as one of the growth sources identified by the company, while vehicle demand conditions remain a challenge for its battery business. Battery sales to Europe and energy storage system shipments offer a picture of the diverse sources of sales during the quarter.
Reuters noted that demand for storage systems is benefiting from the rising electricity needs of AI data centers, opening a source of battery demand beyond the electric vehicle market. But the report also pointed to ongoing losses in the storage business and said analysts believe the timing of its move to profitability has been pushed back. This comes as LG Energy Solution expands its energy storage systems business to address slowing EV demand. The company is scheduled to release detailed third-quarter results on November 3, 2026. Those results will provide a breakdown of the preliminary figures and the components of profitability the company reported in October.