1. LG Display Q2 2025 Earnings: Key Highlights
LG Display reported Q2 2025 revenue of KRW 55.869 trillion (3% below estimates), operating loss of KRW -116 billion (65% below estimates), and net profit of KRW 8.907 trillion (487% above estimates). While revenue and operating profit were sluggish, the turnaround to net profit is a noteworthy achievement.
2. The Secret to Net Profit: OLED and Efficiency
The primary drivers of the net profit turnaround are the growth of the IT and mobile segments and the strengthening of OLED technology competitiveness. The termination of the LCD TV business and the shift to an OLED-focused business improved profitability, and the introduction of the ‘Production AI System’ also contributed to cost reduction.
3. OLED Illuminates the Future: Securing Growth Engines
Based on its OLED technology leadership, LG Display is focusing on developing next-generation technologies such as Meta Technology 2.0 and 4th generation OLED TV panels. It is also securing future growth engines through investments in new businesses such as OLEDos for VR/smartwatches and stretchable displays.
4. Investor Action Plan: Short-term vs. Long-term
- Short-term Investment: Be mindful of stock price volatility due to lower-than-expected earnings. A cautious approach is required at this time.
- Long-term Investment: Considering OLED market growth, technological competitiveness, and financial restructuring efforts, a positive outlook can be maintained. However, continuous monitoring of earnings trends and the factors contributing to the turnaround is crucial.