LG Display (034220) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 6,065.3 billion, up 15% year-over-year, driven by OLED-centric business upgrades and favorable FX rates, but down 23% sequentially from Q4 2024.

• Operating profit was KRW 33.5 billion, marking the first Q1 profit in eight years (excluding COVID period), reversing losses from the previous year.

• Net loss attributable to owners narrowed to KRW 237 billion, compared to a net loss of KRW 761 billion in Q1 2024 and KRW 839 billion in Q4 2024.

• Profitability was driven by OLED business expansion, cost efficiencies, and operational improvements despite seasonal weakness.

• Gross margin improved to 12.2% from 4.1% in Q1 2024.

Financial highlights

• EBITDA for Q1 2025 was KRW 1,231.3 billion, with a 20% margin, up 52% year-over-year but down 6% sequentially.

• Area shipments decreased 19% sequentially but rose 1% year-over-year, led by OLED TV and notebook panels.

• ASP per square meter was $804, down 8% sequentially, but the decline was mitigated by strong OLED performance.

• OLED products accounted for 55% of total revenue, up 8 percentage points year-over-year.

• Cash and cash equivalents stood at KRW 981.4 billion at period end.

Outlook and guidance

• Q2 2025 area shipments expected to decline by mid-20% range due to LCD TV business exit, while ASP per square meter is projected to rise by around 20%.

• Management expects continued OLED shipment growth and further expansion in the high-end market, focusing on OLED-centric strategy and cost innovation.

• Capex for 2025 is planned at mid-KRW 2 trillion, similar to 2024.

• Market volatility expected due to global macroeconomic uncertainty and supply-demand imbalances.