LG Display (034220) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 8% sequentially and 17% year-over-year to KRW 8.7 trillion, mainly due to seasonal smartphone off-peak and LCD TV business exit, with operating loss at KRW 116 billion.

• Net income turned positive in H1 2025, reaching KRW 653.7 billion, aided by FX gains and the sale of Chinese subsidiaries.

• EBITDA for Q2 was KRW 1.05 trillion with a 19% margin, maintaining mid-teen margins for seven consecutive quarters.

• The company completed the sale of its Chinese subsidiaries and exited the LCD TV business, shifting focus to OLED and IT panels.

• OLED business now represents 56% of total revenue, up year-over-year, with OLED TV panel shipments increasing.

Financial highlights

• H1 2025 cumulative sales reached KRW 11.65 trillion, with operating loss improving by KRW 480.5 billion year-over-year.

• Gross margin for Q2 2025 was 9.1%, and for H1 2025 improved to 10.7%.

• EPS improved to KRW 1,782 in Q2 2025, a significant turnaround from prior losses.

• Cash and cash equivalents at Q2 end were KRW 1.67 trillion.

• Debt ratio at 268% and net debt to equity at 155%, both improved sequentially.

Outlook and guidance

• Q3 shipment area expected to decline low to mid-single digits due to product mix changes; ASP per area forecast to rise by mid-twenty percent, driven by seasonal OLED demand.

• Steep rebound in H2 performance anticipated, with profit improvements across OLED panel businesses.

• Full-year 2025 performance is on track to exceed initial expectations, with further improvements targeted.

• Capital expenditure for 2025 is planned at KRW 2 trillion, focused on OLED and premium product mix.

• Management notes that expectations and projections are subject to change based on market conditions and strategic direction.