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 146.7 billion (2.7% margin), up 338% YoY, driven by a strengthened OLED-focused business structure.

• Net income showed a loss of KRW 575.7 billion, widening from previous quarters due to FX translation losses on foreign currency debt amid persistent high exchange rates.

• OLED products accounted for 60% of total revenue, up 5 percentage points YoY, reflecting the company’s strategic shift.

Financial highlights

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

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

• Current ratio was 74%, debt to equity ratio at 251%, and net debt to equity ratio at 157%.

• Area shipment was 3.2 million sq m, down 21% QoQ; ASP per sq m fell 4% QoQ but rose 55% YoY to $1,244.

• Gross margin improved to 13.8% from 13.7% in Q4 2025 and 12.3% in Q1 2025.

Outlook and guidance

• Q2 area shipment is expected to grow by low 10% QoQ, mainly in large panels.

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

• The company will continue to focus on OLED-centered shipments and business expansion, with projections subject to market conditions and strategic direction.

• External uncertainties remain high, including rising semiconductor prices, global demand decline, energy cost increases, and supply chain disruptions.