LG Display (A034220) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 6,065.3 billion, up 15% year-over-year, driven by OLED business expansion and favorable FX rates, but down 23% sequentially from Q4 2024.

• Operating profit was KRW 33.5 billion, marking the first Q1 profit in eight years (excluding COVID period), a significant improvement from a loss of KRW 469 billion in Q1 2024.

• Net loss narrowed to KRW 237 billion, compared to a net loss of KRW 761 billion in Q1 2024 and KRW 839 billion in Q4 2024.

• Profitability was driven by OLED-centric business structure, cost savings, and operational efficiency despite seasonal weakness.

• EBITDA margin hit 20%, the highest since Q3 2021.

Financial highlights

• EBITDA for Q1 2025 was KRW 1,231.3 billion, up 52% year-over-year but down 6% sequentially, with a 20% margin.

• Area shipment decreased 19% sequentially due to seasonality but rose 1% YoY, led by OLED TV and notebook panels.

• ASP per square meter fell 8% QoQ to $804, but was up from $781 in Q1 2024, with the decline mitigated by strong OLED performance.

• OLED products accounted for 55% of total revenue, up 8 percentage points YoY.

• Gross margin improved to 12.3% in Q1 2025 from 4.2% in Q1 2024.

Outlook and guidance

• Q2 2025 area shipment is expected to decline by around 25% due to LCD TV business exit, while ASP per square meter is projected to rise by about 20%.

• Management expects continued growth in OLED shipments and further expansion in the high-end market, despite ongoing IT demand uncertainties.

• The company aims for annual profit turnaround and further profit growth, focusing on OLED-centric business and cost innovation.

• Strategic focus remains on business structure upgrades and operational efficiency.