LG Energy Solution Reports Sharp Rise in Q1 Operating Profit

Profit Soars with Help from U.S. Tax Credits

LG Energy Solution (LGES) announced an estimated 138% year-on-year increase in its first-quarter operating profit, reaching 374.7 billion won ($255 million) for the January-to-March period. This marks a sharp jump from the 157.3 billion won recorded in the same quarter last year.

Performance Beats Analyst Expectations

The reported figure significantly surpasses the 29 billion won average forecast from LSEG SmartEstimate, which leans on analysts with historically consistent accuracy.

Excluding Tax Credits, Losses Revealed

Despite the impressive headline profit, LGES disclosed that excluding tax credits from the U.S. Inflation Reduction Act, the company actually faced an operating loss of 83 billion won ($56.5 million) in the quarter. This adjustment highlights the continued pressure on core operations.

Electric Vehicle Market Headwinds

The loss underscores a broader trend: a cooling in global demand for electric vehicles, which has impacted the performance of battery suppliers and manufacturers alike.

Supplying Industry Leaders

LGES is a key battery supplier to major automakers, including General Motors and Tesla, making its performance a notable indicator of trends in the EV supply chain.

“LG Energy Solution Reports Sharp Rise in Q1 Operating Profit”