LG Energy Solution makes the rechargeable battery cells that go into electric vehicles and energy storage systems (ESS), selling them to automakers and to power-grid and data-center customers. In the first quarter of 2026 it posted an operating loss of ₩207.8 billion as EV battery volumes fell and its new North American ESS plant ran up early start-up costs, but in the second quarter it swung back to profit with revenue of ₩7.5602 trillion and operating profit of ₩113.3 billion — its first black ink in three quarters. The key point lately is that, while EV demand has been soft, ESS is quickly becoming a larger share of sales, and results appear to have passed a trough and entered a recovery. That said, the bottom line is still in the red, and the pace of recovery hinges on how ESS plants ramp up and whether EV demand comes back.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- 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.
- ROE is -5.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.7%.
- P/E is hard to compute here, so this is read on P/B.
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
- LG Energy Solution specializes in making battery cells.
- Revenue comes from two main lines.
- One is batteries for electric vehicles (EVs), where it supplies pouch and cylindrical cells to automakers.
- The other is batteries for energy storage systems (ESS) used in power grids and data centers.
- EV batteries once made up most of sales, but ESS has been growing quickly.
- The company says ESS rose from under 10% of revenue in 2024 to about 25% in the first half of 2026.
- Batteries made in the United States earn a per-unit production tax credit (AMPC) under the Inflation Reduction Act (IRA), and that amount has a meaningful effect on quarterly earnings.
- The latest close is ₩313,500 and the market cap is ₩73.4 trillion.
- The price sits below its 20-day line (₩369,525) and below its 60-day line (₩411,992).
- Being under both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a gauge that scores the balance of up-moves against down-moves over the last 14 days on a 0-100 scale) is 35.8, a neutral reading.
- It is down 18.7% over one month and down 23.3% over three months, and it stands 39.0% below its 52-week high.
- Relative strength versus the KOSPI is 21 (on a 1-99 scale that weights the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 80% of all stocks by strength.
- Over the past three months it lagged the index by 37.8%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Valuation and profitability should be looked at separately.
- Because 2025 ended in a net loss, a P/E ratio (how many times one year of earnings the share price is) cannot be computed.
- The P/B (how many times book net assets the share price is) is 3.63x.
- ROE (how much the company earns in a year on its equity) is -5.3%, negative because of the net loss.
- Even so, the operating margin was 5.7%, meaning it was profitable at the operating level; the business earned money operationally, but non-operating costs dragged the bottom line into the red.
- The debt ratio (debt relative to equity) is 187%.
- A point worth noting is that net debt is negative — the company holds more cash than borrowings, a net-cash position of about ₩3.8 trillion.
- EV/EBITDA (enterprise value, which reflects debt, divided by operating cash-type profit before depreciation) is 15.4x.
- On the other hand, the free-cash-flow yield (actual cash generated relative to market cap) is -7.9%, reflecting a phase of heavy investment as it expands plant capacity.
- Over five years, revenue grew from ₩17.9 trillion in 2021 to ₩33.7 trillion in 2023, then fell to ₩23.7 trillion in 2025 as EV demand slowed — a classic case of a company that grew and then entered a cyclical downswing.
- Profit moved with it.
- From a net profit of ₩1.24 trillion in 2023, it turned to net losses in both 2024 and 2025.
- Operating profit of ₩1.35 trillion in 2025 was well up from the prior year, but the bottom line was still a loss.
- Moving into 2026, there are signs of passing the trough.
- The first quarter was weak, with revenue of ₩6.55 trillion and an operating loss of ₩207.8 billion.
- But the second quarter swung to a profit, with revenue of ₩7.56 trillion (up 15.3% from the prior quarter) and operating profit of ₩113.3 billion.
- The driver of the recovery is ESS.
- The company has said it aims to lift ESS to 35% of revenue by year-end and, helped by second-half ESS demand, expects annual revenue to top ₩30 trillion for the first time in three years — with ESS filling in where EV batteries have been weak.
- Read in order, the disclosures and company statements tell a clear story.
- Late in April, the first-quarter preliminary results confirmed an operating loss, marking the trough.
- Starting that quarter, the company changed its accounting to record the U.S. production credit (AMPC) directly in revenue.
- In June, routine quarterly reports followed, along with disclosures on changes in executive and major-shareholder holdings and on subsidiaries.
- In early July, the second-quarter results confirmed a return to operating profit — the first in three quarters — and a recovery in revenue back into the ₩7 trillion range.
- The company also outlined plans to secure a North American ESS order backlog and to expand U.S.
- ESS capacity.
- Overall, the disclosures support a narrative of "loss trough → return to profit → ESS-led recovery."
- The core thing to watch is the tug-of-war within one company between weak EV demand and fast-growing ESS.
- The strong case runs like this: if ESS demand from data centers and power grids continues and the U.S.
- ESS plant ramps smoothly, revenue growth should lift profit step by step.
- The second-quarter return to profit and revenue recovery are early signals.
- The net-cash position and the IRA tax credit are also supports.
- The weak case is just as clear: if the EV demand recovery is slow, pouch-cell volumes stay soft, and early costs at the new ESS plant can keep eating into profit.
- It is also worth noting that the bottom line is still a loss.
- In short, the operating-level recovery has begun, but a return to net profit needs both a faster ESS ramp and a rebound in EV demand.
🔎 Valuation vs peers Inconclusive
Domestic rechargeable-battery companies that make EV and ESS battery cells and materials — compared against a direct cell-making rival (Samsung SDI) together with materials suppliers (such as EcoPro BM).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung SDI | 0.00x | 1.51x | -3.03% |
| Ecopro BM | 277.09x | 6.31x | 2.28% |
| POSCO Future M | 402.54x | 3.19x | 0.79% |
Because 2025 ended in a net loss, valuation cannot be judged on a P/E basis. In this kind of earnings-inflection phase, metrics based on last year's reported results distort the real picture. On the asset-value measure, the P/B is 3.65x, higher than that of the direct cell rival Samsung SDI (1.55x). There is a reason for the gap, though: LG Energy Solution had already returned to operating profit in the second quarter, while Samsung SDI is still in an operating loss. Materials suppliers (EcoPro BM, POSCO Future M) show metrics running into the hundreds of times on thin earnings, making them hard to compare directly with cell makers. Since the bottom line is still a loss and the pace of recovery depends on the ESS ramp and EV demand, it is more appropriate to hold judgment for now than to call it under- or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩313,500 and the market capitalization is ₩73.4 trillion. The price sits below its 20-day moving average (₩369,525) and below its 60-day moving average (₩411,992). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 35.8, a neutral level. The one-month change is -18.7%, the three-month change is -23.3%, and the position relative to the 52-week high is -39.0%. Relative strength versus the KOSPI is 21 (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 20% of all stocks. Over the past three months it lagged the index by 37.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -37.82% / 6M -48.53% / 12M -57.93%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.63x is above the whole-market median (1.15x).
Enterprise value (EV)
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
Return on equity (ROE) is -5.3%, below the whole-market average (5.0%). The operating margin is 5.7%. The debt ratio is 187.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $22.4B | $17.0B | $15.7B | -7.60% ↑ faster |
| Operating profit | $1.4B | $381.4M | $892.2M | +133.95% ↑ faster |
| Net profit | $820.0M | -$675.2M | -$711.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.8B | $17.0B | $22.4B | $17.0B | $15.7B |
| Operating profit | $509.3M | $804.4M | $1.4B | $381.4M | $892.2M |
| Net profit | $525.3M | $508.5M | $820.0M | -$675.2M | -$711.0M |
| Revenue CAGR | 4-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 Q1 2026 · vs year-ago
Technical indicators
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
- 2026-04-30EarningsFirst-quarter 2026 consolidated preliminary results finalized: revenue of ₩6.5550 trillion and an operating loss of ₩207.8 billion. From this quarter, the U.S. production credit (AMPC) is recorded directly in revenue.Short term: a trough in results confirmed, as EV battery volumes fell and the new North American ESS plant ran up early start-up costs. Medium term: the AMPC accounting change shifts the basis for interpreting the profit structure. Source
- 2026-05-14FilingQuarterly report as of March 2026 filed, formally disclosing first-quarter financials and business status.Medium term: the official document confirming the quarter's results and financial position. Source
- 2026-06-01FilingDisclosure filed on the use of large-scale funds tied to the first tranche of domestic unsecured bonds and on subsidiaries (consolidated).Medium term: shows how funds for large capacity expansions are being spent — a basis for tracking cash flows during the plant-expansion phase. Source
- 2026-07-07EarningsSecond-quarter 2026 results announced: revenue of ₩7.5602 trillion (up 15.3% from the prior quarter) and operating profit of ₩113.3 billion, a return to profit after three quarters. The company also laid out a plan for annual revenue above ₩30 trillion and ESS-led growth in the second half.Short term: the swing back to operating profit signals the earnings trough has passed. Medium term: a larger ESS share of revenue (a year-end target of 35%) is the axis of the profit recovery. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-26Amended filing
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-04-30EarningsFair-disclosure notice (amended)
- 2026-04-29Amended filing
- 2026-04-28Disclosure
- 2026-04-28Disclosure
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
📖 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.