[비즈한국] LG Energy Solution373220 recorded tentative consolidated results for the first quarter of 2026, with revenue of 6.555 trillion won and an operating loss of 207.8 billion won. Compared to the same period last year, revenue decreased by 2.5% and operating profit swung to a deficit. Compared to the previous quarter, revenue increased by 1.2%, but the deficit widened. This marks the second consecutive quarter of operating losses, following the fourth quarter of last year.
A notable aspect of these results is the impact of reflecting the Advanced Manufacturing Production Credit (AMPC, Section 45X) under the U.S. Inflation Reduction Act (IRA). The tax credit amount for the first quarter was 189.8 billion won; excluding this, revenue drops to 6.3652 trillion won and the operating loss widens to 397.5 billion won. The company explained that starting this quarter, it changed its accounting method for North American production subsidies to reflect the AMPC amount in both revenue and operating profit.
The extent of the loss was larger than market expectations as well. A compilation of forecasts from eight major domestic securities firms over the past month showed an expected operating loss of around 159.3 billion won for LG Energy Solution, but the actual loss exceeded this. The LSEG SmartEstimate reported by Reuters also anticipated a loss of approximately 160 billion won.
Industry analysts attribute the sluggish Q1 performance to a combination of cooling electric vehicle (EV) demand and initial operating costs for North American production lines. The analysis suggests that while the Energy Storage System (ESS) business performed well, the slump in the EV sector, increased investment costs for North American ESS production, and expenses associated with the ramp-up process of production lines weighed down profitability.
These tentative results show that the expansion of North American production has not yet led to full-scale profit improvements. LG Energy Solution plans to hold an earnings conference on the 30th of this month to disclose performance by business unit and future strategies.