LG Innotek Set for Q1 Earnings Surprise on Strong iPhone Demand and Fa…

LG이노텍의 패키지 상품을 소개하는 이미지 / 사진 LG이노텍

LG Innotek is expected to deliver earnings that significantly exceed market expectations in the first quarter, traditionally considered an off-season period. The company’s semiconductor substrate business is maintaining near full utilization rates, while profitability in the optical solution division has improved sharply, supported by solid iPhone sales and favorable foreign exchange conditions.

According to a report by Meritz Securities released on March 25, LG Innotek’s consolidated revenue for the first quarter is projected to reach 5.3986 trillion won, up 8.3% year-on-year. Operating profit is expected to surge 60.2% to 200.4 billion won, surpassing the market consensus of 170.7 billion won by roughly 17%.

The earnings momentum is attributed to stable profit defense in the optical solutions segment and structural growth in the semiconductor substrate business. In particular, the substrate division is believed to be operating at peak-season levels even in the first quarter, driven by increased shipments for iPhones and expanding memory-related sales.

Yang Seung-soo, an analyst at Meritz Securities, said substrate utilization is likely to approach nearly 100% within the year, adding that additional capacity expansion decisions could materialize in the first half.

LG Innotek’s share price has fluctuated this year amid mixed sentiment over earnings expectations and industry concerns. After starting the year at 267,500 won, the stock fell to around 232,500 won in early February on worries about slowing iPhone demand, before rebounding on expectations related to its potential expansion into robotics.

2026년 LG이노텍 주가 변화 현황을 나타내는 그래프. 2월 26일 34만5000원으로 최고점을 찍었고, 현재도 새해 시작 때보다 17% 이상 올랐다. / 그래프 이진 기자

On February 26, shares jumped more than 14% intraday following reports that the company would supply camera modules to Boston Dynamics, a robotics subsidiary of Hyundai Motor. The stock hit a 52-week high of 345,000 won. After a brief consolidation in early March, the upward trend resumed as visibility on first-quarter earnings improved. As of the morning of March 25, the stock was trading near 314,000 won, up about 18% from the start of the year.

Meritz Securities cited diversification of the semiconductor substrate portfolio as a key factor for a potential re-rating of the company’s valuation.

Yang noted that while concerns over tighter customer relations due to rising memory prices and declining mobile demand are valid in the short term, the expansion of major clients’ product lineups could enhance mid- to long-term earnings visibility. The firm set a target price of 360,000 won.

An industry official said LG Innotek’s strong first-quarter performance can be interpreted as reflecting both the global success of Apple’s iPhone lineup and the recent high-exchange-rate environment.