LG Energy Solution Q2 Profit Plunges 77% Despite Revenue Growth on Weak EV Demand

LG Energy Solution (KS:373220) expects its second-quarter operating profit to plunge 77% from a year earlier as slowing global electric vehicle (EV) demand continues to pressure the battery industry, despite reporting stronger revenue.

According to the company’s preliminary earnings released Tuesday, operating profit for the April-to-June quarter is projected at 113.3 billion won ($approximately), a sharp decline from 492.1 billion won recorded during the same period last year. However, the result marks a significant recovery from the operating loss of 207.8 billion won reported in the first quarter of 2026, indicating an improvement in profitability on a sequential basis.

LG Energy Solution also posted solid revenue growth. Quarterly revenue is estimated to reach 7.56 trillion won, representing a 24.8% increase compared with the second quarter of last year and a 15.3% rise from the previous quarter. The stronger sales suggest that demand for the company’s battery products remains resilient in certain markets, even as overall EV industry growth has slowed.

The South Korean battery maker, one of the world's largest suppliers of lithium-ion batteries for electric vehicles, has faced mounting challenges from weaker EV sales, cautious consumer spending, and inventory adjustments across the automotive sector. These factors have weighed on earnings across the global battery supply chain despite ongoing investments in production capacity and next-generation battery technology.

LG Energy Solution emphasized that the reported figures are based on preliminary results and remain subject to external audit. The company noted that its finalized financial statements could differ from the initial estimates when full quarterly earnings are released.

Investors will closely monitor the company's detailed earnings report for updates on demand trends, production outlook, and guidance for the second half of the year, as the global EV market continues to navigate slower growth and evolving economic conditions.