LG Chem (051910) investor relations material

Executive summary

• Q2 2026 consolidated sales reached KRW 14.176 trillion, with operating profit at KRW 600 billion and net profit at KRW 67 billion, reflecting improved profitability in Petrochemicals and LG Energy Solution; net income turned positive after two quarters of losses.

• Revenue growth was driven by Energy Solution and Advanced Materials, while profitability improved across most segments.

• H1 2026 consolidated revenue was KRW 26,422,690 million, with main contributions from energy solutions (53.4%), petrochemicals (36.5%), advanced materials (5.6%), life sciences (2.6%), and others (1.9%).

• The group maintained a strong cash position (KRW 11,086,639 million) and total assets of KRW 112,209,782 million as of June 30, 2026.

• Despite market uncertainties from geopolitical risks and raw material volatility, cost optimization and a focus on high value-added products supported earnings.

Financial highlights

• Q2 2026 assets: KRW 112.2 trillion; liabilities: KRW 63.3 trillion; capital: KRW 48.9 trillion.

• Debt ratio increased quarter-over-quarter to 129.6%; net debt/equity was 56.5% in Q2 2026.

• Gross margin improved to 21.1% in Q2 2026 from 18.9% in Q1 2026; EBITDA rose to KRW 2,206 billion.

• Cash and equivalents increased to KRW 12,696 billion at quarter-end.

• Petrochemical Division: sales KRW 5.329 trillion, operating profit KRW 427 billion, margin 8.0%.

• Advanced Materials: sales KRW 999 billion, operating profit KRW 20 billion.

• Life Sciences: sales KRW 369 billion, operating profit KRW 60 billion.

• LG Energy Solution: sales KRW 7.56 trillion, operating profit KRW 113 billion.

Outlook and guidance

• Q3 Petrochemicals expected to face profitability pressure from negative inventory lagging and higher logistics costs.

• Advanced Materials to see growth from new cathode customers and ESS separator volumes; electronic materials to expand with new products.

• Life Sciences and Farm Hannong Q3 profitability to decline due to shipment timing, increased R&D, and higher raw material costs.

• LG Energy Solution expects sales and profitability growth from stable EV battery and ESS demand in North America.

• Continued market uncertainty anticipated; focus on high value-added applications and future growth in semiconductors, mobility, and robotics.