LG Energy Solution Revenue Jumps 27.6% Despite Third-Quarter Net Loss
Key Facts
LG Energy Solution recorded a net loss of 296.9 billion won in the third quarter of 2026, after posting net income of 536.1 billion won in the same period a year earlier, according to the Associated Press. Meanwhile, consolidated revenue rose to 9.6 trillion won, up 27.6% from the second quarter, according to a company statement published via PR Newswire. Revenue included a North American production incentive worth 416.9 billion won, the statement said. The results show a contrast between revenue growth and a net loss during the period. The available sources did not include reliable confirmation that the stock fell 4% after the announcement.
The company attributed the quarter-on-quarter revenue growth to a sharp increase in energy storage system shipments, higher shipments of pouch-type electric vehicle batteries, and continued strong supplies of cylindrical batteries from the 21 and 46 series. It said shipments of pouch batteries benefited from high-voltage, mid-nickel products. It also said supplies of cylindrical batteries designed for electric vehicles remained strong during the quarter. In the European market, pouch battery sales in the mid- and low-price segments helped support earnings, the Associated Press said. The agency also reported that energy storage system shipments to North America contributed to results, despite the continued slowdown in the electric vehicle sector.
Operating profit was 756 billion won, according to the company statement, which said improved plant utilization in Europe supported the performance. It added that growth in cylindrical battery volumes helped boost operating profit, alongside a lower fixed-cost burden as North American energy storage system capacity gradually stabilized. These indicators distinguish operating performance during the quarter from the net result, which was a loss. The company also included the 416.9 billion won U.S. production incentive in revenue, according to the statement. The available information did not detail a direct link between the incentive and the net loss or establish that it was sufficient to prevent one.
The expansion of energy storage systems comes as the business accounts for a growing share of the company’s operations. In its first-half results report, LG Energy Solution said revenue was 14.1 trillion won, up 10.5% year on year, and that energy storage systems accounted for the high teens of total revenue. In the third quarter, shipments of these systems to North America continued to support results, according to the Associated Press. At the same time, the agency said the electric vehicle sector faces a prolonged slowdown, placing storage growth and European pouch battery sales among the factors that supported earnings during the period. These developments bring together storage activity and battery supplies for vehicles in the company’s results.
The company announced that it had secured its first direct supply project for a behind-the-meter battery energy storage system for a major technology company, saying the project could open opportunities tied to AI data centers. The project adds a potential demand channel to the energy storage business, which supported shipments and revenue in the third quarter. In terms of production capacity, LG Energy Solution aims to exceed 70 gigawatt-hours of energy storage battery capacity in North America by the end of 2027. It also aims to have cylindrical battery production capacity in the region exceed 20 gigawatt-hours by the same date. These targets place the expansion of storage and cylindrical batteries among the company’s announced plans for the coming period.