LG Innotek (011070) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was ₩3,934.6 billion, down 21.0% sequentially and 13.6% year-over-year.

• Operating profit dropped to ₩11.4 billion, a 90.9% decrease from Q1 2025 and 92.5% from Q2 2024.

• Net loss of ₩8.7 billion, reversing from profits in prior quarters.

• Operates in three main segments: optics solutions, substrate materials, and automotive components, with a global manufacturing and sales network.

• Major revenue from camera modules (80.6%), with significant contributions from substrate materials (8.9%) and automotive components (10.5%).

Financial highlights

• 2025 H1 consolidated revenue: ₩8,917.4 billion, down from ₩21,200.8 billion in FY2024 and ₩20,605.3 billion in FY2023.

• 2025 H1 operating income: ₩136.5 billion, net income: ₩76.9 billion, basic EPS: ₩3,251.

• EBITDA for Q2 2025 was ₩294.8 billion, down 29.9% sequentially and 38.1% year-over-year.

• Cash and equivalents at quarter-end rose to ₩1,383.4 billion, up 13.0% from Q1 2025 and 18.5% year-over-year.

• Debt-to-equity ratio improved to 0.87 (from 1.13 at FY2024 end).

Outlook and guidance

• Expects stable demand for premium smartphones and growth in semiconductor substrates and automotive components, driven by AI, data centers, and EV/autonomous vehicle trends.

• Mobile segment expected to recover with new model launches and expanded supply in Q3 2025.

• Plans to expand market share in high-value segments and invest in new business areas such as robotics and AI.

• Semiconductor substrates to see further growth from mobile demand and FC-BGA supply expansion.

• Automotive components anticipate continued growth in premium lighting and communication modules.