LG Energy Solution's debt ratio reached 125.3 percent, jumping about 30 percentage points in a year. A securities filing showed that as of the end of the third quarter of 2025 its debt ratio was 125.3 percent and its reliance on borrowings was 33.9 percent, as the impact of past large-scale facilities investment is weighing on its financial structure. Against that backdrop, the company is moving to issue 400 billion won of corporate bonds.

An industry source said on Feb. 25 that LG Energy Solution is pushing ahead with a corporate bond offering. The reported offering amount is 400 billion won, with maturities of 2, 3, 5 and 10 years. It will conduct demand forecasting for institutional investors on Feb. 24 and plans to consider increasing the size depending on the results. The won-denominated bond issue will be its fourth since 2023, and it has issued corporate bonds every year starting with its first 1 trillion won offering.

The background to the bond sale is the fallout from large-scale facilities investment. A securities filing submitted by the company showed that as of the end of the third quarter of 2025 it posted a debt ratio of 125.3 percent and a borrowing dependence of 33.9 percent. That marked a jump of 30.6 percentage points from a debt ratio of 94.7 percent at the end of 2024. Based on acquisitions of tangible assets, capital expenditure in 2024 totaled 12.4 trillion won. The company met that through operating cash flow and external funding such as borrowings.

Despite the expanding financial burden, profitability improved. Operating profit last year was 1.35 trillion won, up 133.9 percent from a year earlier. Higher U.S. ESS output and companywide cost efficiencies helped. Even as revenue fell due to weakening electric-vehicle demand and lower selling prices tied to a decline in metal prices, it judged ESS more likely to provide a turnaround.

LG Energy Solution forecasts global ESS demand at 387 GWh this year, up 40.4 percent from a year earlier. It expects U.S. ESS demand to rise 39.7 percent from a year earlier to 117 GWh in 2026, driven by expanded renewable power generation and U.S. ESS tax credits under the OBBBA bill.

Its financial structure is also more positive than in the past. Operating cash flow in the third quarter of 2025 rose 38.9 percent from a year earlier, showing signs of improvement. It said liquidity risk is low, with a current ratio of 105.8 percent and a quick ratio of 75.6 percent as of the third quarter of 2025.

The key question is whether it maintains its trend of cutting capital spending. The company shifted to reducing CAPEX outlays starting in the third quarter. The bond issue is also seen as securing working capital rather than funding large-scale expansion. LG Energy Solution said, "Large-scale facilities investment has been completed, and considering a stable business foundation based on our strong market position, we will be able to maintain the current level of financial stability."