LG Display (034220) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was KRW 5.534 trillion, down 9% YoY and 23% QoQ, impacted by seasonality and the discontinuation of the LCD TV business.

• Operating profit reached KRW 146.7 billion (2.7% margin), up 338% YoY, driven by a strengthened OLED-focused business structure.

• Net loss widened to KRW 576 billion due to FX translation losses on foreign currency debt and persistent high exchange rates.

• OLED products accounted for 60% of total revenue, up 5 percentage points YoY, reflecting the company’s strategic shift.

• The company continues to focus on cost innovation, operational efficiency, and business structure upgrades for sustainable profitability.

Financial highlights

• EBITDA margin was 21% in Q1 2026, with EBITDA at KRW 1,141 billion.

• Cash and cash equivalents stood at KRW 1.525 trillion, largely unchanged QoQ.

• Area shipment was 3.2 million sq m, down 21% QoQ, with ASP per sq m at $1,244, up 55% YoY due to higher OLED share.

• TV segment contributed 16% of revenue, IT 37%, Mobile and others 37%, and Auto 10%.

• Gross margin improved to 13.8% from 13.7% in Q4 2025 and 12.3% in Q1 2025.

Outlook and guidance

• Q2 area shipment is expected to grow by low 10% QoQ, mainly from large panel shipments.

• ASP per sq m is projected to fall by low to mid 10% due to seasonality in mobile products.

• The company will maintain a cautious approach amid heightened external uncertainties, including rising semiconductor prices, global demand decline, energy costs, and supply chain disruptions.

• Management expects continued focus on high-end products and OLED expansion to drive future performance.

• Projections are subject to change based on market conditions and strategic direction.