LG Display (034220) Q4 2025 earnings summary

Executive summary

• Achieved first annual turnaround in four years, improving profitability by over ₩1 trillion year-over-year, driven by OLED revenue expansion and structural improvements.

• Q4 2025 revenue reached ₩7.2008 trillion, up 4% sequentially but down 8% year-over-year, with solid TV and notebook PC panel shipments.

• Operating profit for Q4 2025 was ₩168.5 billion, a 61% decrease from Q3 but up 103% year-over-year, impacted by lower small/mid OLED shipments and one-off costs.

• Net loss of ₩351.2 billion in Q4, mainly from foreign currency translation losses, after a brief profit in Q3.

• Adjusted operating profit exceeded market expectations, with profitability improvement attributed to better fundamentals and cost structure.

Financial highlights

• Q4 EBITDA was ₩1.162 trillion, with a 16% EBITDA margin, down 18% sequentially and 11% year-over-year.

• Gross margin in Q4 2025 was 13.7%, down from 16.4% in Q3 but up from 11.5% in Q4 2024.

• ASP per square meter was $1,297, down 5% QOQ but up 49% YOY, reflecting OLED business upgrade.

• Total shipment area in Q4 was 4.0 million square meters, up 2% sequentially but down from 6.6 million YOY.

• Cash and cash equivalents at quarter end were ₩1.573 trillion, stable QOQ.

Outlook and guidance

• Q1 shipment area expected to decrease by low 20% range QOQ due to seasonality; ASP per square meter to decline by mid-single digit percent but remain above $1,200, over 50% higher YOY.

• Management expects continued profitability improvement, driven by strengthened WOLED lineup and enhanced customer structure.

• High seasonality and new product launches anticipated to support future performance.

• CAPEX for 2026 expected to rise to ₩2 trillion, up from mid-₩1 trillion in 2025, focused on OLED technology and business strengthening.

• Continued focus on OLED business growth, cost innovation, and operational efficiency to stabilize performance amid external uncertainties.