LG Display booked its largest quarterly net profit in more than 10 years in Q2 2025 based on an extraordinary gain from its sale of the Gen 8.5 LCD fab in Guangzhou. The profit gave a shine to an otherwise bleak quarter, as the company’s streak of quarterly operating profits ended at two. LGD has now reported net losses in 11 of the last 13 quarters.
LGD reported a net profit of KRW 891 billion ($638 million) on revenues of KRW 5.6 trillion ($4.0 billion). Revenues were down 4% QoQ and 18% YoY in US dollar terms. The Korean won appreciated 4% QoQ but depreciated 2% YoY against the US dollar.
The company reported an operating loss of KRW 116 billion ($83 million). The Q2 2025 operating loss compared to an operating profit of KRW 33 billion in Q1 2025 and an operating loss of KRW 94 billion in Q2 2024. LGD's pre-tax profit was KRW 992 billion ($710 million), so net non-operating gains totaled KRW 1.1 trillion. Since LGD’s interest expense was KRW 200 billion in the prior quarter, we estimate LGD had extraordinary gains of KRW 1.3 trillion from gains on currency exchange and (primarily) on the sale of the Gen 8.5 LCD fab to China Star.
Revenues were in line with the consensus estimate and net income was far better than the consensus expectation of a loss of KRW 173 billion. The operating profit was worse than the consensus estimate of an operating loss of KRW 92 billion. The EBITDA profit of KRW 1,054 billion ($754 million) was worse than the consensus EBITDA profit of KRW 1,121 billion.
Operating margin and gross margin declined QoQ by 3% to -2% and 9%, respectively. Gross margin was flat on a YoY basis, while operating margin was 1% worse YoY. Net margin improved by 20% QoQ, but EBITDA margin worsened by 1%.
LG Display Quarterly Income Statement Highlights
With a seasonal slowdown, revenues decreased QoQ for TVs and mobile phones but increased for IT panels and automotive:
- Q2 2025 revenues from automotive applications increased 6% QoQ but decreased 9% YoY in dollar terms and represented 10% of all revenues.
- Revenues from the "mobile, etc." category decreased by 21% QoQ but were flat YoY and represented 28% of total revenues.
- Revenues from TV decreased 13% QoQ and 32% YoY and represented 20% of total revenues.
- Revenues from IT increased 15% QoQ but decreased 22% YoY in dollar terms and increased to 42% of total revenues.
OLED panel revenues decreased 2% QoQ and 12% YoY in dollar terms in Q2 2025. OLED represented 56% of LGD revenues in Q2 2025, up from 55% in Q1 2025. LCD panel revenues decreased 6% QoQ and 25% YoY.
LGD area shipments decreased 26% QoQ and 38% YoY to 4.0 million square meters, with the Guangzhou fab sold. Area price increased 31% QoQ and 36% YoY to $1,056.