LG Corp (003550) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for H1 2026 rose 6% year-over-year to KRW 3,940B, driven by growth in consolidated subsidiaries, notably LG CNS.

• Net income attributable to controlling interests increased 3% year-over-year to KRW 806B, with basic EPS of KRW 5,223.

• Operating income reached KRW 946.8B, up 3.8% year-over-year.

• The group maintained a strong financial position with total assets of KRW 35,931.5B and equity of KRW 32,722.4B.

• Major subsidiaries include IT services (LG CNS), real estate (D&O), electronics, chemicals, and telecom.

Financial highlights

• Equity method gains grew 4% year-over-year to KRW 600B, reflecting better performance from LG Electronics and LG Innotek.

• Operating margin for H1 2026 was 24.0%, and net margin was 20.5%.

• Cash and cash equivalents at period-end were KRW 871.8B; cashable assets on a standalone basis at end-2Q'26 were KRW 1.2T.

• Dividend payout ratio for FY25 was 68% of adjusted separate net income and 65% on a consolidated basis.

• Debt-to-equity ratio remains low, with net borrowings negative (net cash position).

Outlook and guidance

• Dividend policy targets payout of over 60% of separate net income (excluding non-recurring income), with recent years averaging 68%.

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

• Ongoing investments in AI data centers, EV battery, and global expansion in electronics and chemicals.

• Share buybacks funded by non-recurring income and free cash after dividends and investments.

• Focus on digital transformation, AI, and sustainability across business lines.