Lotte Chemical Corporation (011170) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached KRW 5.6894 trillion, with operating profit at KRW 110.1 billion, showing quarter-over-quarter improvement due to wider product spreads in key business areas.

• Net income for Q2 2026 was KRW 196 billion, a significant improvement from previous quarters.

• EBITDA was KRW 458.1 billion, profit before tax KRW 242.4 billion, and net income KRW 194.4 billion.

• Profitability was supported by gains on equity method valuation and FX-driven derivative gains.

• Achieved consolidated revenue of KRW 10.68 trillion for H1 2026, with operating income of KRW 184 billion and net income of KRW 269 billion attributable to owners, marking a return to profitability after two years of losses.

Financial highlights

• Total assets at end-Q2 2026 were KRW 32.8 trillion, liabilities KRW 14.2 trillion, and equity KRW 18.5 trillion; debt-to-equity ratio at 76.8%.

• Basic chemicals revenue: KRW 3.9403 trillion, operating profit: KRW 2.3 billion, margin: 0.1%.

• Advanced materials revenue: KRW 1.1551 trillion, operating profit: KRW 132.5 billion, margin: 11.5%.

• Fine chemicals revenue: KRW 586.3 billion, operating profit: KRW 61.9 billion, margin: 10.6%.

• Energy materials revenue: KRW 194.2 billion, operating loss: KRW 16.9 billion.

Outlook and guidance

• Basic chemicals expected to face eased supply tightness and price strength in H2, with new supply and feedstock price changes impacting results.

• Advanced materials to focus on strategic customers and high value-added products; performance tied to downstream demand and economic recovery.

• Energy materials anticipate higher sales volume in Q3 due to AI and ESS demand and new overseas plant ramp-up.

• Persistent external uncertainties are expected to delay global demand recovery and increase feedstock volatility for Basic Chemicals.

• Ongoing investments in recycling, hydrogen fuel cells, and advanced compounding facilities.