[Edaily Reporter Song Jae-min] LG Display, which is restructuring its business around organic light-emitting diodes (OLEDs), is on the verge of posting a profit for the fourth consecutive quarter.Following its return to an annual profit last year—the first in four years—the company has recorded three consecutive quarters of profit through the first quarter of this year, fueling growing expectations for a full-scale turnaround. However, with securities analysts offering mixed forecasts for the second quarter—a seasonal off-peak period—this quarter is expected to serve as a litmus test for the sustainability of the company’s OLED business restructuring.

According to financial information provider FnGuide on the 11th, the consensus estimate for LG Display’s second-quarter operating profit this year is 7 billion won. While a return to profitability is expected from the 116 billion won loss recorded in the same period last year, the figure is effectively close to the break-even point (BEP).

LG Display recorded an annual operating profit of 517 billion won last year, successfully returning to profitability for the first time in four years since 2021. It also posted an operating profit of 146.7 billion won in the first quarter of this year, marking three consecutive quarters of profitability. The company’s OLED revenue share has expanded to 60%, and analysts note that the effects of restructuring its business around mobile, IT, and automotive OLEDs are now fully evident.

However, market forecasts for second-quarter earnings are sharply divided. While some predict that the profit trend will continue due to the effects of the shift toward an OLED-centric business, others raise the possibility of a return to a loss due to the impact of the off-season and cost burdens. In fact, while some securities firms expect a profit in the tens of billions of won, others forecast an operating loss exceeding hundreds of billions of won.

LG Display is also placing its weight on achieving a profit in the second quarter of this year. Kim Seong-hyun, LG Display’s Chief Financial Officer (CFO), stated during the first-quarter earnings conference call last April, “While the second quarter has traditionally been a period of weak performance, we have operated with the goal of turning a profit this year through ongoing restructuring, business reorganization, and cost innovation initiatives.”

The key variable is costs. Not only is there a possibility that one-time costs related to the recent voluntary retirement program will be reflected, but prices for petrochemical raw materials used in display materials and components are also facing upward pressure due to escalating geopolitical risks in the Middle East. The industry believes that if these cost factors have a greater impact than expected, the possibility of a reduced profit margin or even a loss cannot be ruled out.

In fact, Park Hyung-woo, an analyst at SK Securities, predicted an operating loss of 112.6 billion won for the second quarter of this year, stating, “The sluggish trend is expected to continue through the first half of the year.” On the other hand, Hyundai Motor Securities forecast that the company would maintain a profit in the second quarter, citing the expansion of its competitiveness in premium OLEDs.

However, the industry generally agrees on the possibility of a rebound in the second half of the year. With the launch of Apple’s iPhone 18 series, the proportion of high-value-added products such as the Pro and Pro Max models is expected to increase, leading to forecasts of improved profitability in the mobile OLED business. The expansion of the OLED laptop market and the growth of automotive displays are also cited as factors contributing to improved performance.

A display industry official stated, “While LCD market conditions used to dictate earnings in the past, the structure is now shifting so that OLED competitiveness determines earnings,” adding, “Although second-quarter earnings are important, the real turning point will be the second half of the year, when the impact of Apple’s new products is reflected.”