LG Energy Solution posts record Q3 sales on rising ESS shipments

LG Energy Solution reported record quarterly sales and a 25.7 percent increase in operating profit for the third quarter, according to the company's announcement on Tuesday. The surge in sales was primarily attributed to a significant rise in energy storage system (ESS) shipments and improved electric vehicle (EV) battery sales.

Overall sales surged by 59 percent compared to the same period last year, reaching 9.64 trillion won ($7.2 billion). Operating profit also climbed to 756 billion won, marking a notable 25.7 percent increase year-over-year. This upward trend was evident, with sales expanding by 27.6 percent from the previous quarter, and the operating profit margin reaching 7.8 percent.

The company disclosed that sales figures included 417 billion won in North American production incentives, a testament to the higher shipments of batteries for ESS in the region. Apart from ESS, sales experienced a boost from increased deliveries of high-voltage, mid-nickel pouch batteries for EVs and consistent shipments of 21- and 46-series cylindrical batteries.

The positive impact on operating profits was further supported by enhanced factory utilization in Europe and alleviation of fixed cost burdens as North American ESS production stabilized. The company highlighted that third-quarter sales grew by 28 percent from the preceding quarter, driven predominantly by the substantial increase in ESS shipments and EV battery sales.