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LG Energy Solution expects to post operating loss in Q1 due to fallout from Iran war

Published: 07 Apr. 2026, 17:44

LG Energy Solution Ochang Energy Plant in North Chungcheong

Battery maker LG Energy Solution expects to post an operating loss in the first quarter of this year due to the fallout from the Iran war.

Operating loss came to 207.8 billion won ($138.2 million) in the period from January to March, shifting from a profit of 374.7 billion won a year earlier, the company said in a regulatory filing on Tuesday.

Sales decreased 2.5 percent to 6.55 trillion won. Data for net earnings was unavailable.

The operating loss was 30.4 percent higher than the average estimate, according to a survey by Yonhap Infomax.

The company will release its final earnings report at a later date.

While LG Energy Solution did not provide details of the preliminary earnings report, industry watchers said the loss came amid higher production costs triggered by the conflict in the Middle East.

The company's initial expenditures on its North American energy storage system battery production facilities may also have weighed on its performance, they added.

LG Energy Solution said it received a tax credit of 189.8 billion won through the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act.

Excluding the AMPC, the company recorded an operating loss of 397.5 billion won in the first quarter, the company said.

Yonhap