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LG Energy Solution (373220) 🔎 In-depth

KOSPI · Price as of 2026-08-06 · Updated 2026-08-09

Compiled and reviewed by Bing Bing · Figures are computed automatically from public filings and market data; the written analysis is drafted automatically and then rule-verified · Methodology · AI Disclosure · Report an error

LG Energy Solution makes battery cells for electric vehicles and energy storage systems (ESS) and supplies them to automakers and to power and data-centre customers. Second-quarter 2026 revenue was ₩7.5602 trillion, up 15.3% from the previous quarter, and operating profit of ₩113.3 billion marked the first profit in three quarters — though that was 77% below the ₩492.1 billion of the same quarter a year earlier, and the cumulative first-half net loss was ₩1.2727 trillion. The key point to watch is that ESS volume and North American production tax credits are filling the gap left by EV batteries, giving a signal that the operating line has passed its low point, while stripping out the tax credits still leaves an operating loss and the costs arising from more than ₩20 trillion of net debt are slowing the recovery in net profit.

This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.

30-second brief

Earnings trend
revenue and profit declined.
Financials
financial metrics are around average.
Data as of
prices as of 2026-08-06, financials as of 2026 1분기.

Pulled directly from the computed values below — not a separately written opinion.

What do the SourceComputedEstimateReading tags mean?

Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.

Core valuation metric

EV/EBITDA15.02x

This stock's effective sub-sector is “Battery Cells & Packs” (Secondary Batteries), a type typically read first through EV/EBITDA.

Battery cell and pack makers carry heavy capacity build-outs and depreciation, so net income alone understates how much cash the core business really generates. That is why EV/EBITDA — which looks at operating cash before depreciation and folds in debt — is the first lens.

P/B (price-to-book)3.64x

Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.

This note explains how each sector is typically valued and is educational context only, not investment advice.

At-a-glance assessment financial health · growth · profitability · valuation

Financial healthModerate
  • The most recent full-year net result was a loss.
GrowthDeclining
  • Revenue fell 7.6% year over year (3-year trend: falling).
  • Most recent quarter (Q1 2026) revenue was 2.5% lower than a year earlier.
ProfitabilityLoss-making
  • ROE is -5.3% (controlling-interest basis). It is below the sector average.
  • Operating margin is 5.7%.
ValuationInconclusive
  • A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.

Ownership & governance As of 2025-12-31

Largest shareholder LG Chem 79.38% (corporate)

Controlling bloc incl. related parties 79.38%

With the controlling bloc holding 79%, control is very secure but the free float is thin.

🔎 In-depth analysis Reading

🏢Business

LG Energy Solution makes and supplies battery cells. Money comes in through two main channels. One is electric-vehicle (EV) batteries, where it supplies pouch and cylindrical cells to automakers. The other is batteries for energy storage systems (ESS) installed on power grids and at data centres. EV batteries originally made up most of revenue, but while EV demand has paused, grid stabilization and AI data-centre power demand have grown, and ESS has quickly become the second pillar. US tax credits are an inseparable part of the earnings structure. Cells produced in the United States receive support in proportion to output under the Advanced Manufacturing Production Credit (AMPC, Section 45X) of the Inflation Reduction Act (IRA). From the first quarter of 2026 the company changed its accounting so that this support is presented within 'revenue and other income'. So stripping the subsidy out of second-quarter 2026 revenue of ₩7.5602 trillion and operating profit of ₩113.3 billion leaves revenue of ₩7.3193 trillion and an operating loss of ₩127.7 billion (an operating margin of -1.7%). In other words, the company's quarterly profit and loss currently leans heavily on that programme. On the production side, it acquired partner Stellantis's 49% stake in the Canadian joint venture NextStar Energy, turning it into a wholly owned subsidiary. It now holds North American capacity on its own — but also carries the funding and guarantees for that plant alone.

📈Price & chart

The latest close is ₩345,000 and the market capitalization is ₩80.7 trillion. The price sits above its 20-day moving average (₩325,625) and below its 60-day moving average (₩371,417). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is +3.9%, the three-month change is -28.4%, and the position relative to the 52-week high is -32.9%. Relative strength versus the KOSPI is 14 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 13% of all stocks. Over the past three months it lagged the index by 15.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

📊Key metrics

This is a capital-intensive business that funds large plant expansions with debt. So EV/EBITDA — enterprise value including debt divided by operating profit before depreciation — fits the substance better than net profit or the P/E ratio (how many times one year of earnings the share price represents). It is also the first metric to look at in this detailed sector, so rather than take the on-screen value at face value it was recalculated directly. The on-screen figure is 15.4x. But the net debt behind it reflects cash only, showing what looks like ₩3.8 trillion of net cash. The numbers the company itself states in its quarterly report for the end of March 2026 are different: borrowings of ₩24.6822 trillion less cash and equivalents of ₩3.7449 trillion gives net debt of ₩20.9374 trillion. Adding that net debt to the August 3 market capitalization of ₩73.9440 trillion gives an enterprise value of about ₩94.9 trillion, and dividing by operating profit before depreciation of about ₩5.12 trillion gives an EV/EBITDA of roughly 18.5x — higher than the on-screen value. On the same basis EV/Sales (enterprise value divided by revenue) is about 4.0x. On the remaining metrics: because 2025 net profit was negative, no P/E is calculated, and P/B (how many times book value the shares trade at) is 3.64x (book value per share of ₩86,391). ROE (how much is earned in a year on capital) is -5.3%. The operating margin was 5.7%, so the operating line was in profit and the net loss came from below it. Interest coverage (how many times operating profit covers interest) of 1.22x shows the weight of that burden. The debt-to-equity ratio is 187% and the current ratio 1.10x. The cash position deserves a separate look. Loss-making though it is, this is not the kind of company whose cash is drying up. Operating activities brought in ₩4.4323 trillion in 2025 and it held ₩3.7449 trillion of cash at the end of March, so this is not a business where one counts how many quarters of cash burn remain. Instead, capital expenditure exceeded ₩10 trillion, leaving free cash flow at minus ₩6.5664 trillion, and the FCF yield (cash actually left over relative to market capitalization) at about -8.9% on the August 3 market value. That is the typical look of an investment build-out phase. The company's disclosed plan to cut this year's capital expenditure by more than 40% from last year, and its deferral of a capital injection into a US subsidiary to the end of 2028, both read as steps to ease that cash burden. One more item to watch is off-balance-sheet exposure: outstanding debt guarantees for affiliates stood at ₩5.6026 trillion at the end of March.

🚀Growth

The five-year revenue path looks like a hill already crossed. Revenue grew from ₩17.9 trillion in 2021 to ₩33.7 trillion in 2023, then came down to ₩25.6 trillion in 2024 and ₩23.7 trillion in 2025 as EV demand cooled. The five-year compound annual growth rate is 7.3%, but over the last two years alone it is -16.2%. Profit went in two directions. Operating profit rose 133.9% in 2025, from ₩575.4 billion to ₩1.3461 trillion, but net profit stayed negative for a second year, at minus ₩1.0187 trillion in 2024 and minus ₩1.0728 trillion in 2025. Coming into 2026 the quarterly path is clearer. The first quarter marked the bottom, with revenue of ₩6.5550 trillion, an operating loss of ₩207.8 billion and a net loss of ₩944.0 billion. The second quarter brought revenue of ₩7.5602 trillion (+15.3% quarter over quarter, +24.8% year over year) and operating profit of ₩113.3 billion, the first profit in three quarters. The quality of the recovery improved too: the underlying operating result excluding tax credits narrowed sharply from minus ₩397.5 billion in the first quarter to minus ₩127.7 billion in the second, while over the same period the tax-credit effect grew from ₩189.8 billion to ₩240.9 billion. Expectations should be calibrated, though. Comparing the same second quarter with a year earlier, operating profit fell 77.0%, from ₩492.1 billion to ₩113.3 billion. On a cumulative first-half basis revenue rose 10.5%, from ₩12.7789 trillion to ₩14.1152 trillion, but operating profit swung from a ₩866.8 billion profit to a ₩94.5 billion loss, and net profit from a ₩317.2 billion profit to a ₩1.2727 trillion loss. Sequentially it is a recovery; year over year it is still a step back. The company's stated plan for this year is also a useful reference. In its January 29 disclosure of future business and management plans it guided to 2026 revenue growth of the mid-10% range to 20% year over year, an operating margin in the mid single digits including North American production subsidies, and capital expenditure down more than 40% from the prior year. First-half revenue growth of 10.5% is at the lower end of that range, and the first-half operating margin of -0.7% means reaching a mid single-digit margin for the year would require considerable improvement in the second half. The company did not provide a net profit plan. Here is how the rest of the year looks. North American ESS lines are ramping quarter by quarter, so production-linked tax credits keep growing, and ESS demand from data centres and power grids continues to fill the gap left by EV pouch volume. In practice both axes improved together: the tax-credit effect went from ₩189.8 billion in the first quarter to ₩240.9 billion in the second, while the underlying result excluding tax credits went from minus ₩397.5 billion to minus ₩127.7 billion. If that continues, third-quarter operating profit is likely to exceed the second quarter's, and the fourth quarter has room for a wider improvement as the ESS shipping season overlaps. On an operating-profit basis, a full-year profit this year looks likely. The problem is the line below. The first-half operating loss was ₩94.5 billion but the pre-tax loss was ₩986.5 billion — about ₩890 billion more drained away outside operations. With borrowings above ₩24 trillion, that burden is bound to continue into the second half, and the large net loss already fixed in the first quarter remains on the books. Even with solid remaining quarters, a return to full-year net profit is judged to be beyond this year, which is why no forward P/E was calculated for the current year.

📰Recent news & filings

Laid out in order, the filings tell a clear story. It starts with the January 29 disclosure of future business and management plans, in which the company guided to 2026 revenue growth of the mid-10% range to 20%, an operating margin in the mid single digits including North American production subsidies, and capital expenditure down more than 40% from the prior year — a shift of emphasis from growth toward profitability and cash. On February 6 it decided to end the joint venture by acquiring partner Stellantis's 49% stake in Canada's NextStar Energy. Stellantis had contributed $980 million by then, and the acquisition price was $100. In exchange the company continues to execute the $1.464 billion capital contribution resolved in March 2022. On February 13 came a clarification filing responding to press reports on ESS orders, stating that many ESS supply contracts had been signed through subsidiaries and that additional supply was under discussion in Europe, Japan and elsewhere, with a re-disclosure date set for August 12, 2026. On February 25 the payment deadline for a ₩725.9 billion ($564 million) capital increase in US subsidiary ES America was pushed from the end of February 2026 to the end of 2028 — a sign of slower capital spending. On March 31 the debt guarantee for NextStar was finalized: taking over the $658.71 million that Stellantis had carried, on top of its existing $685.59 million, brings the total to $1.3443 billion, or ₩2.0344 trillion. That took outstanding affiliate debt guarantees to ₩5.6026 trillion. Preliminary first-quarter results on April 30 confirmed the low point, with an operating loss of ₩207.8 billion and a net loss of ₩944.0 billion, and the May 14 quarterly report formally confirmed the financial position: borrowings of ₩24.6822 trillion, cash and equivalents of ₩3.7449 trillion and net debt of ₩20.9374 trillion. Preliminary second-quarter results on July 7 delivered the first operating profit in three quarters, and a corrective filing on July 30 filled in the net profit lines, fixing the second-quarter net loss at ₩328.6 billion and the cumulative first-half net loss at ₩1.2727 trillion. An earnings briefing was held the same day. Overall the filings support a picture of lowered plans and slower investment, then a trough in losses, then a return to operating profit, with net profit not yet recovered.

🧭Bottom line

The core of the story is a clash inside one company between a weak EV business and a growing ESS business. First, the positives. The second quarter brought the first operating profit in three quarters, and even excluding tax credits the loss narrowed from ₩397.5 billion to ₩127.7 billion, so the recovery is confirmed in the numbers. As long as ESS demand from data centres and power grids and North American production tax credits grow together, profit has room to climb in steps. The plan to cut capital expenditure by more than 40% from last year also points toward easing the cash burden. Against the peer set, this is effectively the only company generating operating cash before depreciation at a meaningful scale, so on EV/EBITDA — the metric to check first in this sector — it actually sits low. The cautions are equally clear. Excluding tax credits the operating line is still negative, so underlying profitability is below break-even. Against the same quarter a year earlier, second-quarter operating profit fell 77%, and the cumulative first-half operating result swung from profit to loss. The first-half operating loss was ₩94.5 billion while the pre-tax loss was ₩986.5 billion, showing how heavy the non-operating burden is. Net debt has grown to ₩20.9374 trillion and interest coverage is 1.22x, so for net profit to turn positive, operating profit has to become far thicker than it is now. The company's guided mid single-digit annual operating margin is also a distance from the first half's -0.7%, so how far second-half results close that gap is the point to check. It is also worth watching that a change to the tax-credit programme would shake a large part of profit, and that outstanding affiliate debt guarantees stand at ₩5.6026 trillion. In short, the recovery at the operating line has begun, but the timing of a return to net profit depends on the pace of the ESS ramp and a recovery in EV demand together.

🔎 Valuation vs peers Inconclusive

The set combines the domestic competitor that makes EV and ESS battery cells directly (Samsung SDI) with the materials suppliers that provide the cathode materials that go into cells (EcoPro BM and POSCO Future M). Cells and materials have different profit structures, so multiple levels diverge widely and position is used only as a reference.

PeerP/EP/BROE
Samsung SDI0.00x1.52x-3.03%
EcoPro BM254.72x5.61x2.28%
POSCO Future M406.67x3.17x-0.25%

Start with position. LG Energy Solution's P/B of 3.66x is above Samsung SDI (1.35x) and POSCO Future M (2.99x) and below EcoPro BM (5.48x). Switch to EV/EBITDA, the metric to check first in this sector, and the picture changes. Recalculated with net debt properly reflected, roughly 18.5x is far below Samsung SDI (110.1x), POSCO Future M (76.9x) and EcoPro BM (67.2x). Multiples jump into the tens or hundreds when a company retains almost no profit — which, turned around, means this is effectively the only company in the set producing operating cash before depreciation at a meaningful scale. The premium and the discount split like this. On asset value (P/B) there is a premium to Samsung SDI, apparently reflecting the fact that LG Energy Solution already returned to operating profit in the second quarter while Samsung SDI, with an operating margin of -13.0%, is still in operating loss. On cash-generation multiples, by contrast, it sits clearly below the peer set. Even so, it is too early to settle on one side. Most on-screen metrics are based on confirmed 2025 results, which distort the real picture during a phase when profit is turning. Trying to look forward instead runs into the absence of a net profit line in the company's plan for this year, a cumulative first-half net loss of ₩1.2727 trillion and a heavy non-operating burden that makes a return to full-year net profit unlikely, so no forward P/E can be produced at all. The operating-line recovery is confirmed in the numbers, but when net profit turns depends on the pace of the ESS ramp and a recovery in EV demand. Rather than pin it to one side, inconclusive is the accurate description for now.

₩345,000 +2.83%
Market cap $56.7B

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩345,000 and the market capitalization is ₩80.7 trillion. The price sits above its 20-day moving average (₩325,625) and below its 60-day moving average (₩371,417). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is +3.9%, the three-month change is -28.4%, and the position relative to the 52-week high is -32.9%. Relative strength versus the KOSPI is 14 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 13% of all stocks. Over the past three months it lagged the index by 15.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

14Relative strength vs KOSPI1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 87% strength

Excess return vs index · 3M -15.03% / 6M -28.63% / 12M -54.63%

StockKOSPI

Key metrics Computed vs whole-market median

Valuation

P/E (trailing)
P/B3.64x
P/S3.40x
EPS₩-4,585
BPS (book value/share)₩94,721
Dividend yield
DPS

A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.64x is above the whole-market median (0.84x).

Enterprise value (EV)

Net debt-$2.7B
EV (enterprise value)$54.1B
EV/EBIT57.16x
EV/EBITDA15.02x
EV/Sales3.27x
FCF (free cash flow)-$4.6B
FCF yield-8.13%

EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.

Profitability & financials

ROE-5.31%
Operating margin5.69%
Net margin-4.53%
Debt ratio188.99%
Payout ratio

Return on equity (ROE) is -5.3%, below the whole-market average (3.0%). The operating margin is 5.7%. The debt ratio is 189.0%, so the financial structure is moderate.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$23.7B$18.0B$16.6B-7.60% ↑ faster
Operating profit$1.5B$404.2M$945.7M+133.95% ↑ faster
Net profit$869.1M-$715.7M-$753.7M
5-year20212022202320242025
Revenue$12.5B$18.0B$23.7B$18.0B$16.6B
Operating profit$539.9M$852.6M$1.5B$404.2M$945.7M
Net profit$556.7M$539.0M$869.1M-$715.7M-$753.7M
Revenue CAGR4-yr avg 7.31%

Revenue fell 7.6% year over year (2023 ₩33.7 trillion → 2024 ₩25.6 trillion → 2025 ₩23.7 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 133.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.3%. The two-year revenue CAGR is -16.2%. In the most recent quarter (Q1 2026), revenue was 2.5% lower than the same period a year earlier.

Latest quarterly results Source Q1 2026 · vs year-ago

Revenue$4.6B
Revenue YoY-2.50%
Operating profit-$145.9M
Op. profit YoY-155.45%
Net profit-$663.2M
Net profit YoY-516.66%

Technical indicators Computed

RSI (14)52.2
MA20₩325,625
MA60₩371,417
1-month+3.92%
3-month-28.42%
vs 52-wk high-32.88%

What stands out

Points to watch

  • The most recent full year was a loss, so it is worth checking whether profitability recovers.
  • Revenue fell 7.6% year over year (3-year trend: falling).
  • The price is high versus peers, so expectations already appear priced in.

Recent news & events searched · sourced

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
Second-quarter and first-half 2026 results2026 12 revenue 7₩560.2 billion·operating profit ₩113.3 billion· ₩127.8 billion· ₩328.6 billion. revenue 14₩115.2 billion· ₩94.5 billion· ₩986.5 billion· 1₩272.7 billionMismatchlink
First-quarter 2026 revenue, operating result and net resultrevenue 6₩555.0 billion, ₩207.8 billion, ₩944.0 billionrevenue 6₩555.0 billion, ₩207.8 billion, ₩944.0 billionConfirmedlink
Net debt (the input for recalculating the key sub-sector metric)-3,779,3072026 3 24₩682.2 billion − 3₩744.9 billion = 20₩937.4 billion. 2025 18₩732.8 billionMismatchlink
Precise recalculation of the key sub-sector metric, EV/EBITDA15.43xapprox. 18.5x — 73₩944.0 billion 20₩937.4 billion approx. 94₩900.0 billion ÷ operating profit approx. 5₩120.0 billionMismatchlink
Progress in the first half against the company's official 2026 management planrevenue +10.5%, operating margin -0.7%2026 revenue 10% ~20% , operating margin , 40%Confirmedlink
Financial headroom (whether cash is being depleted)2025 +4₩432.3 billion, -6₩566.4 billion2026 3 3₩744.9 billion .Confirmedlink
Outstanding affiliate debt guarantees (off-balance-sheet exposure)134,430 5₩602.6 billionConfirmedlink
Full-year 2026 net profit outlookself-estimate — operating profit , net profit forward PERUnverifiedlink

Recent filings Source

📖 Plain-language glossary — expand if you are new to this
P/E
How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
P/B
Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
P/S
Price relative to a year's revenue — useful for growth companies with thin earnings.
Net debt / EV
Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
EV/EBIT · EV/EBITDA · EV/Sales
Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
FCF / FCF yield
Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
Intrinsic value (DCF)
Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
ROE
How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
EPS / BPS
Earnings per share / net assets (book value) per share.
Operating / net margin
Profit left from the core business / final profit after tax and interest, per unit of revenue.
Debt ratio
Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
Current ratio
Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
Interest coverage
How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
Dividend yield / payout ratio
The year's dividend as a % of today's price / the share of earnings paid out as dividends.
Revenue CAGR
Multi-year growth expressed as a single yearly average (compound annual growth rate).
RSI (short-term signal)
Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
MA20 / MA60 (moving averages)
The 20- and 60-day average price. Price above them signals a firmer short-term trend.
vs 52-week high
How far below the past year's peak the price sits now (%).

All figures are for reference only; how they read varies by sector and over time.

Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.

Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.