LG Display Q1 Earnings Call Highlights

Key Points

• LG Display reported Q1 revenue of KRW 5.534 trillion (down 9% YoY, 23% QoQ) with operating profit of KRW 146.7 billion but a net loss of KRW 575.7 billion driven mainly by foreign‑exchange translation losses on foreign‑currency debt.
• The company is accelerating its shift to OLED—now 60% of revenue—which helped lift ASP per square meter by 55% YoY as LGD focuses on high‑end customers, expands OLED TVs and monitors, and implements workforce adjustments to improve cost structure.
• Looking ahead, LGD expects Q2 area shipments to rise low‑double‑digits while ASP falls low‑ to mid‑double‑digits; management plans about KRW 2 trillion in 2026 capex amid notable leverage (debt‑to‑equity 251%, net debt‑to‑equity 157%) and continued focus on financial soundness.

LG Display NYSE: LPL reported first-quarter fiscal 2026 revenue of KRW 5.534 trillion, down 9% year-over-year and 23% quarter-over-quarter, as seasonality weighed on shipments. Kim Kyu Dong, vice president and head of the Finance & Risk Management Division, said results reflected “stable OLED product shipment and favorable exchange rate,” but also the impact of seasonal patterns and the base effect from the discontinuation of the company’s LCD TV business in the prior-year period.

Operating profit came in at KRW 146.7 billion, improving year-over-year, with Kim attributing the change to a strengthened business structure and “sustained OLED performance.” Operating margin was 3% and EBITDA margin was 21%.

Net income, however, was a loss of KRW 575.7 billion. Kim said the loss was driven by foreign-exchange translation losses on foreign-currency debt as elevated exchange rates persisted.

Shipments, pricing, and mix shift toward OLED

LG Display said first-quarter area shipments were 3.2 million square meters, down 21% sequentially, citing seasonality and continued efforts to “streamline low-margin models,” particularly in the mid-size product line. Average selling price per square meter fell 4% quarter-over-quarter, reflecting a seasonal decline in smaller panels, which the company said generally carry higher pricing per square meter.

On a year-over-year basis, ASP per square meter rose sharply to $1,244, up 55%, which Kim said was driven by an increased share of OLED as part of the company’s business structure upgrade.

In the quarter, the company’s revenue mix by category was outlined as follows:

• TV: 16%
• IT: 37%
• Mobile and others: 37% (down 3 percentage points QoQ)
• Auto: 10% (up 3 percentage points QoQ)

The OLED product group accounted for 60% of total revenue, up 5 percentage points year-over-year. CFO Sung-hyun Kim said the company’s profitability in the quarter—despite seasonality—reflected multi-year initiatives to transition toward an OLED-focused model, concentrate on high-end strategic customers, and improve cost and operational efficiency.

Balance sheet metrics and Q2 outlook

Cash and cash equivalents were KRW 1.525 trillion, “largely unchanged” from the prior quarter, according to Kim Kyu Dong. The company reported a current ratio of 74%, with a debt-to-equity ratio of 251% and a net debt-to-equity ratio of 157%. Management said it plans to “further strengthen” financial soundness over the long term, while noting temporary quarter-to-quarter fluctuations driven by borrowing portfolio adjustments and exchange rates.

For the second quarter, Kim guided for total area shipments to rise by a low-double-digit percentage quarter-over-quarter, driven mainly by an increase in large-size panel shipments. Price per square meter is expected to fall by a low- to mid-double-digit percentage due to lower mobile shipments from seasonal patterns, which typically carry higher ASP per square meter.

Management flags external uncertainty while emphasizing high-spec competitiveness

During prepared remarks, CFO Sung-hyun Kim cautioned that external uncertainty had increased, citing rising semiconductor prices, declining global demand, higher energy costs, and supply-chain disruptions. He said the company views close monitoring and swift response capabilities as essential, adding that it was “highly positive” that competitiveness in high-spec products is increasing and that technological barriers are rising.

Cho Seung-hyun, vice president and head of business control and management, addressed questions about market impacts from memory shortages and geopolitical tensions. He said the company is seeing “some pull-in demand” in the first half tied to concerns over memory supply, and he also pointed to expected benefits from scheduled major sporting events. For the second half, he said the company planned to be more cautious given potential component price hikes, set price changes, and broader macro uncertainty.

Cho added that impacts vary by company depending on customer and product structure, and said rising chip prices appear to affect mid- to low-end segments more. He said the company would closely monitor demand and component supply-and-demand trends, work actively with customers, and place greater emphasis on cost innovation.

Investment plans and commentary on foldables

Management also discussed capital allocation and recent disclosures related to OLED investment. Sung-hyun Kim said LG Display is maintaining a principle of directing capex primarily toward essential current investments and “future-proof” technology investments. He said 2026 capex is expected to be around KRW 2 trillion, and noted that the company will continue efforts to optimize investment efficiency while balancing growth preparation and financial soundness.

Asked to provide more details on a disclosed KRW 1.1 trillion OLED-related investment, Sung-hyun Kim said the company decided on new facility investment in the context of the rapid pace of technology development and competition, but declined to share specifics, stating that new technology implementation is directly connected to customers’ technology adoption.

Baek Seung-yong, vice president in charge of small display planning and management, addressed the company’s stance on foldables. He said LG Display’s position is unchanged: while foldables can offer differentiated value and are drawing expectations as a new growth driver, the company plans to focus on maximizing production and sales of existing products until it has clearer visibility into market size, growth pace, and opportunity factors. Baek added that if clearer opportunities emerge in smartphones, the company would review market acceptance and growth rate, prepare a supply system, and build on mass-production experience in mid-size foldable devices to pursue additional smartphone opportunities.

Large display strategy: OLED TV and expanding OLED monitors

Kim Yong-Duck, vice president in charge of large display planning and management, said the company is strengthening its high-end OLED TV lineup with leading global set makers and expanding mid- to low-end OLED TV lineups to establish a stable revenue structure amid commodity and semiconductor-driven volatility.

On OLED monitors, Kim said the high-end gaming monitor market is rapidly shifting from LCD to OLED. He said OLED monitors’ share of the company’s total shipments is expected to rise “very significantly” from the low teens percentage last year to around 20% this year. He said the company’s product and customer strategy is to maximize performance and opportunity through an optimized production mix between TVs and monitors while continuing to solidify market leadership.

In the IT segment, Ahn Yu-shin, in charge of medium display planning and management, said ongoing external uncertainty—including the U.S.-Iran conflict—makes it difficult to expect a recovery in IT this year. Ahn said that despite year-over-year declines in first-quarter sales and shipments, profitability improved due to internal initiatives such as strengthening the product mix. For the full year, Ahn said the company plans to focus on high-end differentiated products and further upgrade a high-end-focused customer structure while tailoring a “select and focus” approach to customer demand.

Workforce adjustment and expectations for Q2 profitability

In response to a question about voluntary retirement programs, Kim Kyu Dong confirmed another round of workforce adjustment this year, describing it as part of LG Display’s transition toward an OLED-centric company and broader efforts to improve its cost structure. He said the company recognizes shareholder “fatigue” from repeated actions and acknowledged the program will incur short-term costs. However, he characterized it as necessary from a long-term sustainability standpoint.

Kim said the company could not disclose detailed terms, and noted the program was still ongoing, making it “too early” to quantify the overall cost or scale. He added the company offered a strengthened package in an effort to complete the process within a shorter time frame and with the aim of avoiding similar actions “again in the near future.”

Kim also commented on near-term performance expectations, saying the second quarter has historically been weak for the company, but that restructuring, realignment, and cost-innovation efforts led the company to plan and expect profitability in the second quarter.

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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