LG Display (A034220) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales 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.

• Operating loss for Q2 was KRW 116 billion, impacted by FX volatility and business restructuring.

• Net income turned positive in H1 2025, aided by FX gains and the Guangzhou LCD plant sale, rebounding to a profit of KRW 891 billion.

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

• OLED business now represents 56% of total revenue, up 1pp sequentially and 3pp year-over-year.

Financial highlights

• H1 2025 cumulative sales reached KRW 11.65 trillion; operating loss improved by KRW 480.5 billion year-over-year.

• Cash and cash equivalents at Q2 end were KRW 1.67 trillion, up from KRW 982 billion in Q1.

• Gross margin for Q2 2025 was 9.1%, down from 12.3% in Q1 2025.

• EPS improved to KRW 1,782, a significant turnaround from KRW -474 in Q1 2025.

• Net debts reduced to KRW 11,754 billion from KRW 13,595 billion in Q1 2025.

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.

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