LG Display Q2 Earnings Call Highlights

LG Display posted a second-quarter operating loss, but the result was heavily distorted by a KRW 240 billion workforce restructuring charge ; excluding one-time costs, management said core profitability remained positive and first-half operating performance improved year over year.

Revenue rose slightly to KRW 5.6121 trillion as shipments of medium- and large-size panels increased, while mobile panel production declined seasonally.

The company said its business mix continued shifting toward OLED , which accounted for 57% of revenue.

For the third quarter, LG Display expects a seasonal lift in large and mobile OLED shipments and higher panel pricing, though management warned that the second half faces uncertainty from semiconductors, geopolitics, and rising commodity costs.

LG Display reported a second-quarter operating loss for fiscal 2026 as seasonal weakness in mobile panels and a one-time workforce restructuring charge offset improved underlying profitability and stronger shipments of medium and large displays.

Revenue for the quarter rose slightly both year over year and quarter over quarter to KRW 5.6121 trillion.

The increase was attributed to higher shipments of medium and large-size products, helped by pull-in effects from sporting events, as well as a favorable won-dollar exchange rate.

Mobile product production and shipments declined due to seasonality.

The company recorded an operating loss, with an operating margin of negative 2%, after reflecting one-off costs from intensive workforce restructuring.

EBITDA margin was 16%.

Net loss totaled KRW 418.8 billion, which reflected foreign exchange translation losses as the exchange rate continued to rise from the previous quarter.

The company’s core business profitability, excluding one-off costs, remained in the black.

The workforce optimization program resulted in KRW 240 billion in one-off expenses reflected in the second quarter.

Excluding such one-off costs, business performance was seeing profit.

The result was notable because LG Display had experienced recurring second-quarter losses over the previous four years.

First-half operating performance excluding the restructuring charge improved by more than KRW 100 billion year over year.

The company also said it achieved first-half profit for the first time since 2021, despite seasonality and the one-off expense.

LG Display pointed to an ongoing shift toward an OLED-centric business structure, yield improvements, cost reductions and profitability-focused portfolio adjustments as drivers of the improvement.

The company would continue to focus on “securing top-tier technology” and advancing cost innovation, including the use of artificial intelligence and digital transformation to improve efficiency across development and manufacturing.

Area shipments increased 12% from the prior quarter to 3.6 million square meters, driven by growth in medium and large-size products.

However, average selling price per square meter fell 13% quarter over quarter to $1,079, reflecting the seasonal decline in mobile products, which typically carry higher pricing per square meter.

By product category, LG Display said revenue was divided as follows: IT: 36% Mobile and others: 32% TV: 21% Automotive: 10%

TV revenue share rose 5 percentage points from the previous quarter due to increased shipments, while mobile and oth...