LG Display (NYSE:LPL) outlined steady fourth-quarter shipments in key product categories and reiterated its push to strengthen profitability through an OLED-focused portfolio, while acknowledging that a sizable amount of non-recurring costs weighed on reported operating profit during the period.
Fourth-quarter results: revenue up slightly, operating profit down amid one-off costs
Management said fourth-quarter revenue rose slightly from the prior quarter to ₩7.2008 trillion, supported by solid shipments of TV and notebook PC panels. The company noted, however, that the typical seasonal uplift was weaker than usual due to a change in the mix within certain small and mid-sized OLED products.
LG Display said fourth-quarter results included costs related to:
- Voluntary retirement programs for domestic and overseas employees, totaling more than ₩90 billion, as part of workforce structure efficiency efforts.
- Incentive payments linked to achieving its first annual turnaround in four years and intended to motivate employees for future competitiveness.
- Costs incurred during portfolio adjustments aimed at improving profitability and operational efficiency, including reducing low-margin products and rationalizing inventory.
The company emphasized that, excluding one-off costs, fourth-quarter operating performance expanded both quarter-over-quarter and year-over-year, which management said reflects continued improvement in business fundamentals and profitability.
LG Display posted a net loss of ₩351.2 billion, which it said was primarily driven by foreign currency translation losses due to a higher year-end exchange rate. EBITDA was ₩1.162 trillion, representing a 16% EBITDA margin.
Shipments and pricing: modest area growth, ASP still elevated year-over-year
Total shipment area in the quarter increased modestly to 4.0 million square meters, despite the seasonally strong period. Management said TV and notebook PC shipment area rose quarter-over-quarter, while monitor and tablet shipment area declined.
ASP per square meter was $1,297, down 5% quarter-over-quarter. The company attributed the decline largely to certain small and mid-sized OLED model shipments being concentrated in the third quarter. Even so, ASP was up 49% year-over-year, which LG Display said reflected continued progress in shifting its business toward OLED and supported expectations that pricing can remain at a comparatively high level.
Product mix and OLED shift: 65% of revenue in the quarter
Management said revenue share by product group was largely unchanged from the third quarter:
- Mobile and others: 40% of revenue, up 1 percentage point quarter-over-quarter due to product mix shifts.
- IT: 36%, down 1 percentage point quarter-over-quarter, reflecting differing shipment trends by category.
- Auto: 7%, down 1 percentage point quarter-over-quarter.
The company also said TV revenue share rose slightly as shipments of white OLED panels for TVs and monitors increased.
OLED products accounted for 65% of total revenue in the fourth quarter, unchanged quarter-over-quarter and up 5 percentage points year-over-year. For the full year, OLED share reached 61%, up from 55% the prior year, which management called a record. CFO Kim Seong-hyun said the company is moving closer to solidifying an OLED-centric structure, noting it has exited the large LCD business after the sale of its Gwangju LCD plant.
Balance sheet: lower inventory and debt, improved leverage ratios
LG Display ended the quarter with ₩1.573 trillion in cash and cash equivalents, roughly flat from the prior quarter. Inventory was ₩2.546 trillion, down year-over-year, which management attributed to efficiency initiatives.
Total debt fell by ₩1.886 trillion from the end of 2024 to ₩12.664 trillion, while net debt decreased by ₩1.437 trillion year-over-year to ₩11.091 trillion. The company reported a 243% debt-to-equity ratio and a 141% net debt-to-equity ratio, improving both quarter-over-quarter and year-over-year.
Outlook and strategy: seasonal Q1 dip, continued OLED investments and cautious IT OLED expansion
For the first quarter, management guided for a seasonal decline across all product groups, with total shipment area expected to fall by the low-20% range quarter-over-quarter. ASP per square meter is expected to decline by a mid-single-digit percentage quarter-over-quarter, but the company expects the downturn to be more muted than in comparable periods historically due to the OLED-heavy portfolio. LG Display said it expects ASP to remain above $1,200, which it noted would be more than 50% higher year-over-year.
On the call, executives described strategic priorities focused on restoring competitiveness and maintaining stable profitability each quarter. The CFO said restructuring and operational efficiency efforts must continue, shifting in purpose from “survival” to rebuilding competitiveness across technology, costs, products, and operational structure. He also said the company aims to be profitable across all businesses and to recover market trust.
In Q&A, the company provided several operational updates:
- Mobile OLED (smartphone panels): Management said 2025 shipments increased meaningfully in the first half and reduced seasonality versus prior years. For the full year, the company said it achieved its shipment target of mid-70 million units, supported by a diversified product portfolio. For 2026, it said it aims to further reduce the first-half/second-half gap and expand shipments beyond last year’s growth.
- Memory semiconductor price dynamics: Management said rising memory prices could pressure IT demand via higher set prices and could also increase customer pressure for panel price reductions. It said near-term impact has been limited but volatility is high and is being monitored.
- IT business and 8.6-generation OLED investment: Management said it has upgraded its customer structure toward global high-end clients and reduced low-margin products while driving cost innovation, improving profitability year-over-year. It described a two-track approach: LCD focused on high-end, profitability-driven products and OLED focused on responding to new demand and preparing for future markets (including tandem OLED). On 8.6-gen IT OLED, the company said it is monitoring IT OLED expansion but does not yet see sufficient demand visibility to justify an investment decision.
- Large OLED (TV and monitor): Management said large-panel shipments reached approximately the mid-6 million-unit level, up about 8% year-over-year. Looking ahead, it said uncertainty remains and overall market growth may be limited, but the high-end segment targeted by OLED is about 10% of the total market. It set a goal of around 10% shipment growth to just over 7 million units, supported by stronger TV and monitor lineups and strategic customer partnerships.
On capital spending, LG Display said 2025 CAPEX finished at the mid-₩1 trillion level after investment efficiency efforts. For 2026, it expects CAPEX at the ₩2 trillion level, reflecting planned investments to strengthen OLED technology competitiveness and support OLED business expansion and future readiness.
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.
