LX Semicon (108320) Q2 2025 earnings summary

Executive summary

• Revenue for 2Q25 was KRW 3,786 hundred million, down 20.5% year-over-year and 20.5% sequentially from 1Q25.

• Operating profit dropped to KRW 102 hundred million, a significant decline from KRW 597 hundred million in 1Q25.

• Net profit for 2Q25 was KRW 83 hundred million, down from KRW 454 hundred million in 1Q25.

• Specializes in fabless semiconductor design and sales, focusing on display panel driver ICs, timing controllers, and power management ICs, with diversification into MCU and heat dissipation plate businesses.

• Export sales account for over 99% of revenue, with two major customers representing a significant portion of sales.

Financial highlights

• Gross margin decreased to 30.4% in 2Q25 from 34.1% in 1Q25.

• EBITDA margin fell to 5.2% in 2Q25 from 14.5% in 1Q25.

• H1 2025 consolidated revenue: KRW 854.8 billion, down from KRW 943.2 billion in H1 2024.

• Operating income: KRW 69.9 billion, down from KRW 102.3 billion year-over-year.

• Net income: KRW 53.7 billion, down from KRW 84.4 billion year-over-year.

Outlook and guidance

• Anticipates continued growth in OLED and automotive segments, with expansion of heat dissipation plate capacity planned.

• DDI market expected to grow gradually, driven by new panel form factors and premium product demand.

• Automotive and MCU businesses targeted for further expansion as new growth drivers.