LG Chem (051910) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 12.247 trillion, with LG Energy Solution contributing 53.5%, petrochemicals 36.0%, advanced materials 6.6%, life sciences 2.5%, and others 1.4%.

• Operating loss was KRW 49.7 billion, with a net loss of KRW 781.9 billion, narrowing from the previous quarter.

• Gross margin was 18.9%, but higher SG&A and finance costs led to negative operating and net results.

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

• 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; gross margin: 18.9%; EBITDA: KRW 1,442 billion.

• Operating loss: KRW 49.7 billion; net loss: KRW 781.9 billion; basic EPS: -4,449 KRW per share.

• Cash and equivalents at quarter-end: KRW 8,532.4 billion.

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

• Dividend declared: KRW 2,000 per common share, KRW 2,050 per preferred share.

Outlook and guidance

• Petrochemicals expect stable profitability in Q2 despite temporary plant shutdowns, supported by inventory effects and cost controls.

• Advanced Materials projected to turn profitable, driven by increased cathode material volumes and new semiconductor materials.

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

• LG 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.