LG Display swung back to profit last year for the first time in four years, as it doubled down on organic light-emitting diode products and pushed through companywide cost reforms.
The company said Wednesday that it logged an operating profit of 168.5 billion won ($117.6 million) for the fourth quarter, although revenue dropped 8 percent on-year to 7.2 trillion won. For the full year, revenue stood at 25.8 trillion won, with operating profit reaching 517 billion won — a sharp reversal from the 560.6 billion won loss recorded in 2024.
It marked the company's first yearly surplus since 2021, when it posted 2.33 trillion won in operating profit. Between 2022 and 2024, the panel-maker remained in the red, grappling with slowing demand in IT and TV sectors, intensifying market competition and prolonged macroeconomic uncertainty.
What turned the tide was the company's intensified focus on OLED panels, now at the heart of its portfolio. OLED products accounted for 61 percent of total revenue last year — the highest share in its history — up from 55 percent in 2024 and 40 percent in 2022. In 2020, the figure had been just 32 percent. The shift was further accelerated by the company's complete withdrawal from the large liquid crystal display business.
LG Display reported earnings before interest, taxes, depreciation and amortization of 4.87 trillion won last year with a 19 percent margin, underscoring tighter cost control amid sluggish demand and persistent pricing pressure in the display industry.
Looking ahead, LG Display said it plans to deepen operational efficiency this year by integrating artificial intelligence across development and manufacturing processes, with the aim of sharpening both technological and cost competitiveness.
In the mobile display segment, the firm will seek to capture new demand using its strengthened production capabilities. The IT business, meanwhile, will continue scaling down low-margin offerings and focusing on cost innovation, while delivering differentiated premium displays tailored to key clients.
The company also plans to expand its lineup of OLED panels for TVs and gaming monitors, in a bid to reinforce its presence in the premium segment. In the automotive sector, LG Display said it would maintain a competitive edge through a refined portfolio of customized technologies designed for next-generation vehicles.
"Although uncertainties in the external environment persisted last year, we were able to return to profit by focusing on structural improvements and operational efficiency," said Kim Sung-hyun, chief financial officer at LG Display.
"This year, we will continue our transformation into a technology-driven company and focus on building a sustainable profit structure to expand our performance further," he added.
yeeun@heraldcorp.com
