LG Display Co Ltd Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
LG Display Co Ltd's Q3 2025 earnings call highlighted a focus on OLED business structure upgrades, cost innovation, and strategic initiatives to address external uncertainties. Key discussion points included financial performance improvements, segment results, capital expenditure plans, and market strategies for various product categories.
Key Financial Results
Revenue reached KRW 6.957 trillion, up by 25% Q-o-Q and 2% Y-o-Y.
Operating profit improved by over ¥500 billion Q-o-Q and Y-o-Y, reaching ¥431 billion.
Excluding one-time costs, the business performance stands at approximately ¥470 billion.
Net income was ¥1.2 billion, including the impact from the foreign currency translation gain.
EBIDTA in Q3 was ¥1.4239 trillion with an EBITDA margin of 20%.
ASP per square meter was $1,365, up 29% Q-o-Q.
Cash and cash equivalents in Q3 stood at KRW 1.555 trillion, largely unchanged Q-o-Q.
Debt to equity ratio was 263% and net debt to equity ratio 151%, down 5 and 4 percentage points respectively Q-o-Q.
Year-to-date business performance showed revenue of KRW 18.6093 trillion and operating profit of KRW 345 billion.
Operating profit year-to-date improved by approximately ¥ 1 trillion Y-o-Y.
Business Segment Results
Mobile and others reached 39% of revenue, up 11 percentage points Q-o-Q.
IT revenue share fell to 37%, shrinking by 5 percentage points Q-o-Q.
TV segment revenue share was 16%, down 4 percentage points Q-o-Q.
Auto segment share was 8%, down 2 percentage points Q-o-Q.
The share of OLED products out of total revenue was 65%, up 9 percentage points Q-o-Q and 7 percentage points Y-o-Y.
Capital Allocation
CapEx this year is expected to be at high KRW 1 trillion range below last year's level.
Prudent investment decisions will be made, maximizing the use of existing infrastructure.
New investments will be executed with profitability as the top priority.
Industry Trends and Dynamics
Continuous growth is expected in area shipment of OLED products in Q4, while LCD shipment is expected to decrease.
The market outlook for auto is more positive than other product areas.
Expanding in-vehicle display adoption and accelerating enlargement of displays are leading the market.
There is growing demand in high-end tablet market with tandem OLED technology.
There is anticipated shift to OLED in the notebook sector.
Competitive Landscape
Competition is expected to intensify in the auto sector.
LG Display plans to maintain its competitive edge and create differentiated customer value based on its market position and diversified technology and product portfolio in the auto sector.
The company will solidify its leading position in the premium market with a various lineup of OLED panels.
Macroeconomic Environment
External uncertainties and shipment volatility are expected to persist in Q4.
Variables remain in the business environment, including macro-related real demand, intensifying competition among suppliers and supply chain stability.
Growth Opportunities and Strategies
Prioritizing business efficiency initiatives to address challenges.
Ensuring more stable operations by expanding panel shipments every year based on technological leadership and stronger customer partnerships in the small mobile business.
Broadening future business opportunities by implementing future proofing activities, including R&D and investments in new technologies.
Responding to the growing demand in high-end tablet market with tandem OLED technology.
Responding effectively to the anticipated shift to OLED in the notebook sector.
Remaining focused on reducing low margin products while focusing on B2B and differentiated high-end LCD segments in IT LCD business.
Solidifying leadership in the premium market with a various lineup of OLED panels offering unique value, based on close partnership with strategic customers in large panel business.
Maintaining competitive edge and create differentiated customer value based on solid market position and diversified technology and product portfolio in auto.
Financial Guidance and Outlook
Total area shipment is projected to grow in low-single-digit percentage Q-o-Q.
ASP per square meter is expected to decline in low-single-digit percentage Q-o-Q.
OLED products revenue share is expected to be similar Q-o-Q in Q4, with the annual share projected at a low 60% level.
Planning for an additional workforce improvement program in Q4 as part of ongoing cost innovation effort.
The one-time costs occurred by this Workforce Improvement program will be offset after one and a half years, providing positive impact on the business performance thereinafter.
Continuous growth is expected in area shipment of OLED products in Q4, while LCD shipment is expected to decrease.
