LG Display Co Ltd Earnings - Q4 2025 Analysis & Highlights
LG Display Co., Ltd. (034220.KR) reported a slight increase in Q4 2025 revenue to KRW 7.2008 trillion but a decline in operating profit to KRW 168.5 billion due to one-off costs related to manpower structure efficiency and profit structure strengthening. The company achieved its first annual turnaround in four years and continued its OLED-centric business structure upgrade, with OLED products accounting for 65% of total revenue in Q4 and 61% year-to-date. CapEx is projected to increase to KRW 2 trillion in 2026. The company aims to become a technology-centric company, focusing on profitability across all businesses and strengthening competitiveness in technology, cost, products, and operations.
Key Financial Results
Revenue rose slightly Q-o-Q to KRW 7.2008 trillion.
Operating profit declined Q-o-Q to KRW 168.5 billion.
Net loss was KRW 351.2 billion, down Q-o-Q, primarily due to foreign currency translation loss.
EBITDA in Q4 was KRW 1.162 trillion with an EBITDA margin of 16%.
ASP per square meter was $1,297, down 5% Q-o-Q, but up 49% Y-o-Y.
Total non-recurring cost impact in Q4 was in the high KRW 300 billion range.
Excluding one-off costs, Q4 operating profit was roughly mid-KRW 500 billion.
Business Segment Results
Mobile and others accounted for 40% of revenue, up 1 percentage point Q-o-Q.
IT revenue share remained almost unchanged at 36%, down 1 percentage point Q-o-Q.
TV share out of revenue rose slightly by 1 percentage point.
Auto revenue share rose to 7%, down 1 percentage point Q-o-Q.
OLED products accounted for 65% of total revenue in Q4, unchanged Q-o-Q and up 5 percentage points Y-o-Y.
Year-to-date, OLED share rose to 61% from 55% last year, up 6 percentage points.
Smartphone business generated stable results in 2025, with annual panel shipment around mid-70 million units.
Large panel business achieved panel shipment of approximately mid-6 million level in 2025, growing nearly 8% Y-o-Y.
Capital Allocation
Cash and cash equivalents at quarter-end were KRW 1.573 trillion, largely unchanged Q-o-Q.
Inventory at quarter-end declined Y-o-Y to KRW 2.546 trillion.
Total debt decreased by KRW 1.886 trillion from the end of 2024 to KRW 12.664 trillion.
Net debt fell by KRW 1.437 trillion Y-o-Y to KRW 11.0910 trillion.
Debt-to-equity ratio improved to 243%, and net debt-to-equity ratio to 141%.
CapEx in 2025 was completed at mid KRW 1 trillion.
In 2026, CapEx is expected at KRW 2 trillion level, up Y-o-Y.
Industry Trends and Dynamics
Panel shipments by product have diverged from traditional seasonality, reflecting downstream conditions, customers' inventory levels, and strategic panel buying trends.
Shipment area for TV and notebook PC panels grew Q-o-Q in Q4, while shipment for monitor and tablet panels declined.
OLED market expansion in IT is being closely monitored, but there is insufficient visibility into demand to justify an 8.6 gen investment decision.
OLED TV is expected to maintain unwavering leadership in the market.
OLED monitors are expected to see continued steep growth.
Competitive Landscape
The company is focused on strengthening competitiveness in technology, cost, products, and efficient operation.
Smartphone panel development and production capabilities are proven and recognized, with sufficient know-how to address diverse technical needs.
The large panel business expects competition to intensify, requiring continued strengthening of technology and product differentiation.
Macroeconomic Environment
External uncertainty and volatility in global markets persisted in 2025.
External uncertainty and product level volatility in the downstream market are expected to persist in 2026.
Macroeconomic-driven real demand, changes in the trade environment, and supply chain stability are factors in the business environment.
Rising component prices driven by semiconductors and supply chain disruptions contribute to lingering uncertainties.
The impact of memory semiconductors on the company currently remains limited, but volatility is high.
Growth Opportunities and Strategies
The company is pursuing an OLED-centric business structure to broaden and strengthen its growth and profitability base.
For small mobile, the strategy is to expand panel shipment leveraging differentiated technological leadership and strengthened customer partnerships.
For medium-sized OLED, the strategy is to respond to high-end market demand and proactively to shifts in market demand and customer requests.
For IT LCD, the focus is on B2B and differentiated high-end LCD while reducing low-margin products.
For large panels, the strategy is to solidify leadership in the premium market through a differentiated and diversified TV and gaming OLED panel lineup.
For automotive, the strategy is to sustain competitive advantage and create customer value based on market leadership and a differentiated product and technology portfolio.
The company aims to become a normalized and competitive company by completing a business structure where all businesses are profitable.
Financial Guidance and Outlook
Shipment area is expected to fall across all categories in Q1 due to seasonality.
ASP per square meter is also expected to fall slightly Q-o-Q in Q1, but will be tempered compared to past quarters due to the OLED-centric business structure.
Total shipment area is projected to decrease by low 20% level from the previous quarter.
ASP per square meter is projected to decline by mid-single-digit percent but remain above the $1,200 line in Q1, up by more than 50% Y-o-Y.
CapEx in 2026 is expected at KRW 2 trillion level, up Y-o-Y.
The target for large panel shipment in 2026 is set at just over 7 million, to grow by around 10% Y-o-Y.
