LG Display (034220) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was KRW 5.534 trillion, down 9% YoY and 23% QoQ, impacted by seasonality and the discontinuation of the LCD TV business.

• Operating profit reached KRW 147 billion, with a margin of 2.7–3%, reflecting a strengthened OLED-focused business structure and improved performance.

• Net loss widened to KRW 576 billion due to significant non-operating and FX translation losses on foreign currency debt.

• OLED products accounted for up to 60% of total revenue, up from 42% in Q1 2026, reflecting a strategic shift to high-value segments.

• The company continues to focus on cost innovation, operational efficiency, and business structure upgrades for sustainable profitability.

Financial highlights

• EBITDA margin was 21% in Q1 2026, with EBITDA at KRW 1,141 billion.

• Gross margin improved to 13.8% in Q1 2026, up from 12.3% in Q1 2025.

• Cash and cash equivalents stood at KRW 1.525 trillion, largely unchanged QoQ.

• Area shipment was 3.2 million sq m, down 21% QoQ, with ASP per sq m at $1,244, up 55% YoY due to higher OLED share.

• TV segment contributed 16% of revenue, IT 36–37%, Mobile and others 37–38%, and Auto 10%.

Outlook and guidance

• Q2 area shipment is expected to grow by low 10% QoQ, mainly from large panel shipments.

• ASP per sq m is projected to fall by low to mid 10% due to seasonality in mobile products.

• Capex for 2026 is planned at mid-to-high KRW 2 trillion, focused on OLED capacity and technology upgrades.

• OLED infra investment of KRW 1.1 trillion approved in April 2026, with completion by June 2028.

• No cash dividends planned due to accumulated losses; future dividend policy under review.