LG Energy Solution 2quarterly operating profit 1965billion won forecast

South Korea’s battery industry 2is expected to pass the bottom in earnings starting in the quarter. The recovery in global electric vehicle demand is slow, but demand for power infrastructure from AI data centers is emerging as a new growth driver. As a result, expectations for an industry recovery are spreading.

1Through the quarter, LG Energy Solution was the only company to record a profit. 2In the quarter, the recovery appears to be spreading more broadly as Samsung SDI narrows its losses. Signs of improved profit-and-loss structures are being seen across the industry.

LG Energy Solution 2is forecast to report quarterly revenue of 7trillion 262won and operating profit of 1965won. The company is reported to be relying on revenue related to North American production and ESS to support its earnings.

LG Energy Solution's 2quarterly revenue, compared with the same period a year earlier, 5 trillion won5654 hundred million won, is forecast to rise by 26.2%. Operating profit is expected to expand sharply from the previous year's 14 hundred million won. The explanation is that the benefits of the Advanced Manufacturing Production Tax Credit (AMPC) from North American production and strength in the ESS business are supporting results.

The industry is watching how investment in power infrastructure for AI data centers is driving up ESS demand. However, the recovery in global electric vehicle demand remains slow. Whether the recovery trend is confirmed in companies' quarterly earnings announcements is key.