LG Display Co., Ltd.

Q2 revenue was KRW 5.6121 trillion, up slightly YoY and QoQ. The company recorded an operating loss, with operating margin at -2%, EBITDA margin at 16%, and net loss of KRW 418.8 billion, partly due to FX translation loss. Area shipment rose 12% QoQ to 3.6 million sq m, while price per square meter declined 13% QoQ to $1,079. Management said Q2 included KRW 240 billion of one-off restructuring expense. Cash and cash equivalents were KRW 1.452 trillion, debt to equity was 260%, and net debt to equity was 156%. For Q3, management expects large and mobile OLED shipments to rise seasonally, area shipment to grow by mid-single-digit percent QoQ, and price per square meter to rise by a high-teen percentage level. Capex in 2026 is expected to be in the mid to high KRW 2 trillion range.

The lead executives framed the quarter as evidence that the company’s OLED-centric transformation is working, even with seasonality and restructuring costs. They emphasized that the business was profitable excluding one-off costs and said the first-half result marked the first profit in five years, which they attributed to technological leadership and company-wide cost reduction. Tone-wise, management was confident but cautious, repeatedly noting macro uncertainty, demand volatility, and the need to keep refining cost innovation and process efficiency.

CFO Kim Sunghyun said Q2 operating loss was driven by the traditional mobile seasonality and KRW 240 billion of one-off workforce optimization costs, while core profitability excluding those costs stayed positive. He highlighted more than KRW 100 billion of first-half YoY improvement, ongoing yield improvement, profitability-focused portfolio changes, and partnerships with global customers as supports to results. On capital allocation, he said 2026 capex is expected in the mid to high KRW 2 trillion range and that investment decisions will depend on demand visibility, customer discussions, cost competitiveness, and expected returns.

Analysts pressed management on the size of restructuring costs, second-half guidance, and whether weakness in IT and handset markets could pressure profitability. Management said the Q2 restructuring charge was KRW 240 billion and reiterated that, excluding it, the company achieved profitability and ended a pattern of second-quarter losses. On the business outlook, executives pointed to uncertainty from semiconductors, geopolitics, higher material costs, and weaker IT demand, but said they would offset this with cost innovation, mix improvement, and stronger OLED positioning.