LG Corp (003550) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was KRW 1,801B, a 7% decrease year-over-year, mainly due to lower equity method gains and the sale of a major building asset.

• Net income attributable to controlling interests dropped 41% YoY to KRW 340B, with EPS of KRW 2,203 per common share.

• Operating income was KRW 413.8B, down from KRW 638.0B in Q1 2025.

• Major subsidiaries include electronics, chemicals, telecom, IT services, real estate, and consulting.

• Separate revenue declined 3% YoY to KRW 393B, with net income down 5% YoY to KRW 320B.

Financial highlights

• Brand royalties and rental revenues fell 4% YoY to KRW 118B, impacted by asset sales.

• Equity method gains dropped 48% YoY to KRW 251B, mainly from the chemical sector and prior-year base effects.

• Revenues from consolidated subsidiaries rose 8% YoY to KRW 1,431B, led by LG CNS.

• Gross profit for Q1 2026 was KRW 508.4B, down from KRW 727.3B in Q1 2025.

• Cash and cash equivalents at quarter-end were KRW 1,499.1B.

Outlook and guidance

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

• IT services and AI/cloud segments are expected to drive future growth.

• Chemical and battery businesses anticipate stable demand, with ongoing R&D and portfolio optimization.

• Telecom expects continued 5G and AI-driven service expansion.