LG Chem (051910) investor relations material

Executive summary

• Q3 2026 consolidated revenue was KRW 15,496bn, operating profit KRW 561bn and net loss KRW 600bn; sales rose QoQ while operating profit eased from KRW 600bn.

• Stronger-won foreign-currency valuation losses at LG Energy Solution contributed to the net loss; Petchem losses were offset by improved Advanced Materials and Energy Solution performance.

• Management emphasized profitability, premium products and restructuring amid uncertain markets and weak demand.

Financial highlights

• Q3 gross profit was KRW 3,048bn, gross margin 19.7%, SG&A KRW 2,487bn and operating margin 3.6%, slightly lower QoQ.

• Pre-tax loss was KRW 645bn; other non-operating expenses totaled KRW 1,206bn.

• Q3-end assets were KRW 102.2tn, liabilities KRW 58.6tn, equity KRW 43.6tn and cash and equivalents KRW 9.2tn; liabilities/equity was 134.4%.

• Operating cash flow was KRW 395bn; depreciation was KRW 1,576bn.

Outlook and guidance

• Petchem faces high oil prices, geopolitical and FX pressure, Yeosu No. 1 NCC maintenance and narrow spreads; high-value products, cost reduction and inventory optimization are priorities.

• Advanced Materials revenue is expected to rise on Battery Materials volume growth, with profitability near prior-quarter levels; electronic-material demand is supported by semiconductor and mobility markets.

• Cathode shipments are expected below the 2026 plan after North American project delays; 2027 volume is forecast near 2x 2026, while softer metal prices may temper revenue growth.

• Tennessee cathode mass production is expected in Q1 2027, subject to customer inventory and production plans; agreement on supply volumes and compensation is targeted by year-end.

• Life Sciences expects higher Q4 revenue and profitability from concentrated vaccine exports and upfront payments under an amended rare-obesity treatment license agreement.