LG Uplus (032640.KS) Q1 2026: FCF Jumps 5.8x as Buyback Debuts
Mobile lines grew 6.4% and 5G penetration hit 84.2%, but the real story is a 36% surge in operating cash flow and the company's
₩19.5 billion in treasury stock purchases this quarter under the ₩80 billion buyback program announced in July 2025under the ₩80 billion buyback program announced in July 2025 — a small absolute figure, but one that aligns LG Uplus with the broader capital-return shift visible across Korea's three telecom incumbents.
Balance Sheet
Asset Composition — Capex Burn-Off Phase Begins
| Item | Prior year-end (₩B) | Q1 2026-end (₩B) | Change |
|---|---|---|---|
| Cash and cash equivalents | 794.3 | 908.4 | +14.4% |
| Trade receivables (current) | 1,681.2 | 1,691.1 | +0.6% |
| Inventory | 209.8 | 172.3 | -17.9% |
| Property, plant & equipment | 10,625.0 | 10,431.1 | -1.8% |
| Intangible assets | 1,459.6 | 1,359.1 | -6.9% |
| Total assets | 19,681.8 | 19,686.0 | +0.0% |
Total assets barely moved, but the composition shifted meaningfully. PP&E declined 1.8% and intangibles fell 6.9% because quarterly depreciation and intangible amortization of ₩686.5 billion combined outpaced new capex of ₩599.3 billion (PP&E ₩361.2B + intangibles ₩238.1B). In other words, even after spending close to ₩600 billion in a single quarter on 5G, enterprise lines, and AIDC, the carrier is now in a phase where book-value PP&E and intangibles are net contracting — a sign of capex maturity. Inventory dropped 17.9%, reflecting both softer handset revenue (₩766.8 billion on a consolidated basis) and inventory rationalization at the same time.
