This article first appeared on GuruFocus .
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Revenue:KRW5.612 trillion, slightly up YoY and QoQ.
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Operating Profit Margin:-2%.
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EBITDA Margin:16%.
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Net Income:Loss of KRW418.8 billion.
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Area Shipment:Increased by 12% QoQ to 3.6 million square meters.
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Price per Square Meter:Decreased by 13% QoQ to $1,079.
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Revenue Breakdown:TV 21%, IT 36%, Mobile and Others 32%, Auto 10%.
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OLED Revenue Share:57%, slightly up YoY.
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Cash and Cash Equivalents:KRW1.452 trillion, slightly down QoQ.
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Debt-to-Equity Ratio:20%.
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Net Debt-to-Equity Ratio:156%.
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CapEx Spend 2026:Expected in the mid to high KRW2 trillion range.
Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue in Q2 2026 rose slightly year-over-year and quarter-over-quarter to KRW5.612 trillion, driven by increased shipments of medium- and large-sized products.
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OLED capability is stabilizing, and company-wide cost reduction efforts are continuing, leading to improved operating performance excluding one-off costs.
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The company achieved profit for the first half of the year for the first time in five years since 2021, despite seasonality and one-off costs.
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OLED share out of revenue was 57%, increasing slightly year-over-year, indicating a successful expansion of the OLED business.
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The company is focusing on securing top-tier technology and advancing cost innovation through AI and digital transformation to enhance production capability and drive growth.
Negative Points
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The company recorded an operating loss in Q2 2026 due to one-off costs from intensive workforce restructuring.
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Net income recorded a loss of KRW418.8 billion due to the impact of foreign exchange translation loss.
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Price per square meter fell 13% quarter-over-quarter to $1,079 following the seasonal decline in shipments of mobile products.
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Cash and cash equivalents in Q2 were slightly down quarter-over-quarter, and the net debt-to-equity ratio stood at 156%, partly affected by exchange rate volatility.
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The market situation in the second half is expected to be challenging due to rising material costs and demand uncertainty, particularly after the World Cup.
Q & A Highlights
Q: Considering the pull-in demand in Q2, what were the one-off costs incurred, and how did they affect the operating performance? Are there any changes to the company's full-year outlook? A: The one-off costs in Q2 amounted to KRW240 billion due to a large voluntary retirement package. Excluding these costs, the company achieved a profit, ending a trend of chronic losses in Q2 over the past four years. The full-year outlook remains on track, supported by technological leadership and cost innovation.
Q: With positive seasonality in Q3, what is the company's strategy to expand revenue and improve profitability amid potential risks like weak IT demand and macroeconomic volatility? A: Despite uncertainties such as geopolitical tensions and rising commodity prices, LG Display plans to focus on competitive cost-cutting and delivering technological value to achieve planned business performance in the second half of the year.
Q: What is the profitability outlook for large-sized panels in the second half, considering competition from RGB mini LED products? A: The market will be challenging due to rising material costs and demand uncertainty. LG Display will promote the unique strengths of white OLED technology and strengthen high-end brand lineups to maintain leadership. OLED monitors are expected to grow, with shipments rising from 10% last year to 20% this year.
Q: How does LG Display plan to address the risks associated with rising IT set prices and declining IT LCD sales? A: The company is securing supply flexibility and focusing on high-end customer accounts to maximize profitability. For IT OLED, LG Display is reviewing competitive approaches to utilize existing fabs efficiently and secure fundamental competitiveness.
Q: What are the plans for the small-sized panel business, particularly in the smartphone market, and how will LG Display mitigate risks from rising component costs? A: LG Display is increasing its smartphone panel market share through technological competitiveness and product reliability. The company plans to utilize existing infrastructure efficiently and invest in new technologies. Cost innovation across production and operations will help sustain profitability and strengthen technological barriers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
