LG Display (034220) Q4 2025 earnings summary

Executive summary

• Achieved a significant turnaround after four years, improving profitability by over ₩1 trillion year-over-year, driven by business structure upgrades and a higher OLED revenue share.

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

• Operating income for Q4 2025 was ₩168.5 billion, a 61% decrease from Q3 2025 but up 103% year-over-year.

• Net income turned to a deficit of ₩351.2 billion in Q4 2025, mainly from foreign currency translation losses.

• Positive impact from favorable Won/Dollar exchange rate, though product mix shift in small-to-medium OLED panels affected results.

Financial highlights

• EBITDA for Q4 2025 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 2025 but up from 11.5% in Q4 2024.

• Operating margin for Q4 2025 was 2.3%, down from 6.2% in Q3 2025 but up from 1.1% in Q4 2024.

• Excluding non-recurring costs, Q4 operating profit exceeded market expectations at mid-₩500 billion, improving both QoQ and YoY.

• Net debt to equity ratio improved to 141.5% in Q4 2025 from 150.8% in Q3 2025.

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 digits but remain above $1,200, up over 50% 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.

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