LG Corp (003550) Q1 2025 earnings summary

Executive summary

• Consolidated revenue for Q1 2025 rose 19.2% YoY to KRW 1,936.1B, driven by electronics recovery, IT services, and equity method gains.

• Net income attributable to controlling interests increased to KRW 608.5B, supported by higher equity method gains and LG CNS revenue.

• Separate revenue declined 16% YoY to KRW 404B, mainly due to a 23% drop in dividend income from weaker chemical business and base effect of interim dividend.

• Dividend income and royalty revenue declined YoY, but robust subsidiary and affiliate performance offset this.

• The group maintained a strong financial position with total assets of KRW 32,552.7B and equity of KRW 28,929.0B.

Financial highlights

• Consolidated operating profit for Q1 2025 was KRW 638B, up 51% YoY.

• Gross profit margin improved to 37.6% from 32.8% YoY.

• Equity method gains surged 51% YoY to KRW 482B, led by LG Display's recovery and expanded stakes in LG Electronics and LG Chem.

• Cash and cash equivalents at period-end: KRW 2,177.4B; debt-to-equity ratio remains low with negative net borrowings.

• Earnings per share: KRW 3,762 (common), KRW 3,812 (preferred).

Outlook and guidance

• Dividend policy targets payout of at least 60% of separate net income (excluding non-recurring income), with interim dividends introduced from FY25.

• Treasury shares cancellation of KRW 500B (3.9% of common shares) planned by 2026.

• IT services, digital transformation, and AI/cloud remain key growth drivers.

• Major affiliates expect continued growth in electronics, chemicals, and battery solutions, with some margin pressure in chemicals and telecom.