LX Semicon (108320) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q26 was KRW 3,888 hundred million, down 18.4% year-over-year and 0.3% sequentially from 4Q25.

• Gross profit for 1Q26 was KRW 1,164 hundred million, with a gross margin of 29.9%, down from 30.5% in 4Q25.

• Operating profit for 1Q26 was KRW 206 hundred million, a 17.3% sequential decrease and a 65.5% year-over-year decline.

• Net profit for 1Q26 was KRW 154 hundred million, down from KRW 249 hundred million in 4Q25.

• Operates as a fabless system semiconductor company specializing in display panel driver ICs, timing controllers, and power management ICs, with a diversified portfolio including MCUs and heat dissipation plates.

Financial highlights

• EBITDA for 1Q26 was KRW 303 hundred million, with an EBITDA margin of 7.8%, down from 8.8% in 4Q25.

• SG&A expenses decreased to KRW 958 hundred million in 1Q26, representing 24.6% of revenue.

• R&D expenses were KRW 549 hundred million in 1Q26, or 14.1% of revenue.

• Total assets increased to KRW 15,016 hundred million as of March 2026, up 7.3% from December 2025.

• Cash and cash equivalents rose 20.9% sequentially to KRW 5,423 hundred million.

Outlook and guidance

• Display Driver IC market expected to grow gradually, driven by new demand from panel form factor changes.

• Premium TV and IT display segments forecasted to see qualitative growth, with OLED adoption increasing.

• Automotive and AI-related heat dissipation plate business expected to grow at a CAGR of 6% through 2030.

• Forward-looking statements indicate uncertainty due to market and operational factors, with actual results potentially differing materially from projections.