LG Chem (051910) investor relations material

Executive summary

• Q1 2026 consolidated revenue reached KRW 12.247 trillion, a 6.2% increase from Q4 2025 but down 2.6% year-over-year, with an operating loss of KRW 50 billion and a net loss of KRW 782 billion, narrowing from the previous quarter.

• Total assets were KRW 105.7 trillion, liabilities KRW 57.6 trillion, and equity KRW 48 trillion.

• The debt to equity ratio increased to 119.7% sequentially.

• Market volatility and demand uncertainty persist due to geopolitical risks and weak North American EV demand.

Financial highlights

• Q1 consolidated revenue: KRW 12.247 trillion; operating loss: KRW 50 billion; net loss: KRW 782 billion.

• Gross margin for Q1 2026 was 18.9%, up from 15.9% in Q4 2025 but down from 19.9% in 2025.

• EBITDA for Q1 2026 was KRW 1,442 billion, up from KRW 1,103 billion in Q4 2025.

• Cash and equivalents at quarter-end were KRW 9,685 billion, down from KRW 10,903 billion at Q4 2025.

• Positive inventory lagging effects and one-off income from European anti-dumping duty refunds supported petrochemical profitability.

Outlook and guidance

• Persistent market volatility expected due to Middle East conflict and North American EV demand softness.

• Petrochemicals profitability expected to remain stable QoQ despite reduced sales from a temporary NCC No.2 shutdown, supported by naphtha lag effects and cost reductions.

• Advanced Materials projected to turn profitable, driven by increased cathode material volumes.

• Life Sciences anticipates revenue growth from higher volumes and ongoing global clinical R&D investments.

• Energy Solution expects revenue growth from expanded ESS shipments and stable cylindrical EV battery demand.

• Disciplined CapEx execution under KRW 2 trillion annually, portfolio rebalancing, and asset monetization planned.