LG Display (034220) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a significant turnaround to profitability, with operating profit of KRW 431 billion and net income of KRW 1.2 billion, reversing prior losses and driven by strong OLED panel shipments and cost innovation.

• Revenue for Q3 2025 reached KRW 6.957 trillion, up 25% QoQ and 2% YoY, while year-to-date revenue was KRW 18.6093 trillion.

• OLED products accounted for 65% of Q3 revenue, reflecting a strategic shift and solidifying the foundation for future growth.

• For the first nine months of 2025, consolidated net profit was KRW 655 billion, compared to a net loss of KRW 2,409 billion in 2024.

• The sale of Chinese subsidiaries in April 2025 impacted consolidated results, including a disposal gain.

Financial highlights

• EBITDA for Q3 was KRW 1.4239 trillion, with a margin of 20%, and gross margin improved to 16.4%.

• Operating margin reached 6.2% in Q3 2025, up from negative margins in prior quarters.

• Basic and diluted EPS for the first nine months were KRW 1,165, compared to losses per share in prior years.

• Cash and cash equivalents at period end were KRW 1.55 trillion, stable QoQ but down from KRW 2.02 trillion at the end of 2024.

• Year-to-date operating profit was KRW 345 billion, showing a KRW 1 trillion YoY improvement.

Outlook and guidance

• Q4 is expected to see continued growth in OLED area shipments, while LCD shipments will decrease as the company focuses on profitability.

• Capital expenditure for 2025 is planned in the high KRW 1 trillion range, lower than the KRW 2.2 trillion spent in 2024, with a new OLED investment plan announced in June 2025.

• Management expects continued volatility in demand due to global macroeconomic uncertainty but sees growth opportunities in premium OLED, IT, and automotive segments.

• Additional workforce improvement program planned for Q4, with anticipated greater financial impact than Q3.

• OLED revenue share in Q4 expected to remain similar, with annual share projected at low 60% level.