LG Energy Solution (LGES) has announced its first-quarter earnings for 2025, reporting a profit after implementing cost-cutting measures.
According to the report, despite revenue decreases in other divisions, LGES turned a profit based on aggressive cost-cutting and more.
The company’s consolidated revenue was KRW 6.3 trillion, a 2.9% decrease quarter-on-quarter but a 2.2% increase year-on-year.
The operating profit reached KRW 375 billion, with an EBITDA margin of 20%, a positive turn.
This profit includes an IRA tax credit of KRW 458 billion.
LGES CFO Chang Sil Lee commented that the company was able to effectively return to profitability in the first quarter as its efforts bore fruit.
The report statement indicates that LG Energy Solution reallocated its North American production capacity to respond to market changes and address ongoing uncertainties.
It put its Arizona ESS plant construction on hold, deciding to instead utilize its existing Michigan plant. The aim is for this plant to start producing LFP batteries for ESS this year.
LG Energy Solutions claims to be a leading lithium-ion battery manufacturer for electric vehicles, mobility, and energy storage systems.
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