LG Chem (051910) Q4 2025 earnings summary

Executive summary

• 2025 annual sales declined to KRW 45.9 trillion from KRW 48.7 trillion in 2024, with a net loss of KRW 1,573 billion and operating profit rising to KRW 1,181 billion due to improved product mix and ESS sales.

• Q4 2025 sales were 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.

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

• The company is accelerating portfolio optimization, focusing on high-value-added products, and restructuring low-margin businesses.

Financial highlights

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

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

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

• 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).

• 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.

• Continued market volatility and limited demand recovery expected in 2026.

• Focus on high-value-added growth, with battery materials shipments to new customers ramping up and commercialization of new cathode technologies targeted for 2027.

• Life Sciences expects 6% YOY revenue growth in 2026, driven by core products and expanded overseas sales.

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