LG Corp (003550) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for H1 2025 rose 8.3% year-over-year to KRW 3,734B, driven by subsidiary growth and equity method gains.

• Net income attributable to controlling interests increased 32% year-over-year to KRW 785B, supported by LG CNS performance and LG Display recovery.

• Separate revenue declined 13.5% year-over-year to KRW 523.1B, mainly due to a 22.7% drop in dividend income from affiliates.

• Major subsidiaries include electronics, chemicals, and telecom, with strong performance in IT services and energy solutions.

Financial highlights

• Consolidated operating profit for H1 2025 was KRW 915B, up from KRW 732B in H1 2024.

• Net income: KRW 852.6B; EPS: KRW 5,089 (common shares).

• Total assets: KRW 31,461.9B; equity: KRW 28,554.4B; debt-to-equity ratio: 0%.

• Dividend payout: KRW 478.2B; interim dividends and share buybacks executed.

• Brand royalties and rental revenues remained stable at KRW 242B.

Outlook and guidance

• Dividend payout policy targets over 60% of separate net income (excluding non-recurring income), with a recent 7-year average payout of 67%.

• Introduction of interim dividends from FY25 and flexible record dates.

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

• IT services and energy solutions expected to drive future growth, with continued investment in AI, cloud, and digital transformation.

• Telecom subsidiary expanding into AI, data centers, and EV charging infrastructure.