LG Energy Solution Posts 122 Billion Won Operating Loss in Q4 2025

Operating Loss Narrows by 45.9% Year-on-Year
Quarterly Deficit Continues Despite IRA Tax Credits
Annual Operating Profit More Than Doubles from Previous Year

LG Energy Solution reported preliminary consolidated results for the fourth quarter of last year, with sales of 6.1415 trillion won and an operating loss of 122 billion won. Compared to the same period of the previous year, sales decreased by 4.8%, and the company continued to post an operating loss.

On January 9, LG Energy Solution announced its preliminary results for the fourth quarter of 2025 through a public disclosure. Although sales declined slightly year-on-year, the size of the operating loss shrank by 45.9% compared to the operating loss of 225.5 billion won in the same period a year earlier. The company attributed the decrease in sales to sluggish demand for electric vehicles and inventory adjustments by its clients. However, the operating loss was nearly halved due to cost structure adjustments and the positive impact of expanded production in North America.

Quarterly Performance Graph of LG Energy Solution. LG Energy Solution

Excluding the approximately 330 billion won in Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA), the fourth-quarter operating loss would be 454.8 billion won, with an operating margin of -7.4%.

On an annual basis, the company showed signs of improvement. Accumulated sales for 2025 totaled 23.6718 trillion won, down 7.6% from the previous year, but accumulated operating profit reached 1.3461 trillion won, up 133.9% from 575.4 billion won a year earlier. Analysts attribute the annual performance to the effects of tax credits from increased North American production and the alleviation of fixed cost burdens.