LG Chem (051910) Q4 2025 earnings summary

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, marking a return to loss position.

• Full-year 2025 sales declined to KRW 45.9 trillion from KRW 48.7 trillion in 2024, with net income turning negative at -KRW 977 billion and operating profit improving to KRW 1,181 billion.

• Several business units were discontinued or sold, with results retroactively adjusted.

• Strategic focus for 2026 includes portfolio optimization, high-value-added product expansion, and business restructuring amid ongoing market volatility.

Financial highlights

• Assets at end-2025 were KRW 101 trillion, liabilities KRW 54 trillion, and capital KRW 47.1 trillion.

• Debt ratio increased year-on-year to 114.5%.

• Q4 2025 saw significant non-operating losses, mainly from asset impairments totaling KRW 1.9 trillion.

• EBITDA for 2025 was 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.

Outlook and guidance

• 2026 revenue target (excluding energy solution) is KRW 23.8 trillion, with growth expected in Advanced Materials and Life Sciences.

• Focus on high-value-added revenue growth of 20%+ annually in petrochemicals and stable volume growth in battery materials.

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

• Life Sciences targets 6% YOY revenue growth in 2026, driven by core products and global drug development.

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