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- 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 (NYSE:LPL) 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.
Kim Kyu Dong, vice president in charge of finance and risk management, said revenue for the quarter rose slightly both year over year and quarter over quarter to KRW 5.6121 trillion. He attributed the increase 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 Kim said reflected foreign exchange translation losses as the exchange rate continued to rise from the previous quarter.
Underlying Profitability Improves Despite One-Time Costs
CFO Kim Sunghyun said the company's core business profitability, excluding one-off costs, remained in the black. In the Q&A session, he said the workforce optimization program resulted in KRW 240 billion in one-off expenses reflected in the second quarter.
"Excluding such one-off costs, I was determined to see that our business performance was going to be seeing profit," Kim said through a translator. He added that the result was notable because LG Display had experienced recurring second-quarter losses over the previous four years.
Kim said 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. Kim said 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.
Shipment Mix Shifts Toward Larger Panels
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 others declined by 5 percentage points due to OLED seasonality. OLED accounted for 57% of revenue, up slightly from a year earlier.
The company ended the quarter with KRW 1.452 trillion in cash and cash equivalents, slightly lower than the previous quarter. Its debt-to-equity ratio stood at 260%, while net debt-to-equity was 156%. Kim Kyu Dong said exchange-rate volatility had partly affected those ratios, but the company's efforts to improve long-term financial stability were continuing.
Third-Quarter Guidance Points to Seasonal OLED Lift
For the third quarter, LG Display expects shipments of large and mobile OLED products to increase due to positive seasonality. Total area shipments are projected to rise by a mid-single-digit percentage from the second quarter, reflecting some pull-in demand in the prior period and the company's ongoing optimization of its IT LCD portfolio.
Price per square meter is expected to increase by a high-teens percentage level, supported by shipment expansion from mobile OLED seasonality.
Kim Sunghyun cautioned that the second half carries "much more than usual" uncertainty, citing semiconductors, geopolitics and rising commodity prices as factors contributing to macroeconomic volatility. He said LG Display would continue cost-cutting efforts and focus on delivering technological value as it works toward its planned business performance.
OLED TV, Gaming Monitors and IT Strategy
In the large-display business, Kim Jong-deok, vice president of large display planning and management, said the second-half market would be challenging due to rising material costs, including semiconductor components, and demand uncertainty following the end of the World Cup. He also cited aggressive promotions of RGB Mini LED TVs by Greater China suppliers as intensifying competition in the high-end segment.
Kim said LG Display plans to promote the unique strengths of White OLED technology, strengthen high-end brand lineups with global set makers and expand mid- to low-end OLED TV offerings. In gaming monitors, he said OLED adoption is growing as the high-end gaming monitor market shifts from LCD to OLED. LG Display expects OLED monitors to increase from a low-teens percentage of large-size shipments last year to about 20% this year, with further growth expected next year.
For medium-size displays, Ahn Yoo-shin, vice president of medium display planning and management, said rising semiconductor costs and IT set price hikes make second-half demand "highly uncertain." The company plans to refine its customer mix toward high-end accounts, reduce low-margin products and continue cost reductions. Ahn said LG Display expects profitability in the segment to continue improving year over year.
On IT OLED, Ahn said the company is reviewing more competitive approaches, including using existing fabs to improve efficiency and secure fundamental competitiveness.
Mobile OLED Investment and Capex Outlook
Baek Seung-ryong, vice president of small display planning and management, said LG Display is steadily increasing its smartphone panel market share based on technological competitiveness and product reliability. To meet rising demand, he said the company will use existing production infrastructure efficiently while carefully reviewing and executing preemptive investments in new technologies.
Asked about handset makers' rising cost burden and the risk of lower panel average selling prices, Baek said the company recognizes industrywide concerns tied to component costs and macroeconomic changes. He said LG Display aims to sustain profitability through cost innovation across production and operations while supporting customers' new models with timely technology development.
Kim Sunghyun said LG Display expects 2026 capital expenditures to be in the mid- to high-KRW 2 trillion range. He said large-scale investments tied to mass production will require demand visibility, confidence in market growth and discussions with customers, and that decisions will balance the company's financial position with long-term competitiveness.
About LG Display (NYSE:LPL)
LG Display Co, Ltd., headquartered in Seoul, South Korea, is a global manufacturer of thin-film transistor liquid crystal display (TFT-LCD) and organic light-emitting diode (OLED) panels. The company designs and produces display solutions for a wide range of applications, including televisions, desktop monitors, notebook computers, tablets, smartphones, signage and automotive screens. Its product offerings span large-screen television modules, ultra-high definition monitors, flexible and transparent OLED displays, and specialized industrial panels.
LG Display operates a network of production facilities and research centers across Asia, including major manufacturing sites in Paju and Gumi, South Korea, as well as Wuhan, China.
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