LG Chem (051910) investor relations material

Executive summary

• Q4 2025 sales reached KRW 11,197 billion with an operating loss of KRW 413 billion and a net loss of KRW 1,573 billion, returning to a loss position.

• Full-year 2025 sales declined to KRW 45.9 trillion, down 6% YoY, with net income turning negative at -KRW 977 billion; operating profit improved to KRW 1,181 billion due to improved product mix and ESS sales.

• Several business units were discontinued or sold, with results retroactively adjusted; company-wide restructuring and divestitures were executed to upgrade the business portfolio and maintain positive cash flow.

Financial highlights

• 2025 consolidated sales: KRW 45.9 trillion, down 5.7% YoY; operating profit: KRW 1,181 billion (2.6% margin); net income: -KRW 977 billion.

• EBITDA: KRW 6,534 billion, up from KRW 5,547 billion in 2024.

• Cash and equivalents at year-end: KRW 10.9 trillion, up from KRW 8.1 trillion in 2024.

• As of end-2025: assets KRW 101 trillion, liabilities KRW 54 trillion, capital KRW 47.1 trillion.

• Q4 2025: Petrochemicals sales KRW 3,947 billion (operating loss KRW 239 billion), Advanced Materials sales KRW 725 billion (operating loss KRW 50 billion), Life Sciences sales KRW 356 billion (operating profit KRW 16 billion), Farm Hannong sales KRW 185 billion (operating profit KRW 14 billion), Energy Solution sales KRW 6,142 billion (operating loss KRW 122 billion).

Outlook and guidance

• 2026 sales target (excluding Energy Solution) is KRW 23.8 trillion, with growth expected in Advanced Materials and Life Sciences.

• Focus on portfolio optimization, high-value-added products, and future growth engines.

• Advanced Materials expects 2026 sales of KRW 4.5 trillion and improved operating margin.

• Life Sciences targets 6% YoY revenue growth in 2026, driven by core products and global expansion.

• Petrochemicals: Profitability improvements expected to be limited due to continued oversupply, especially from China.