📊 LG Innotek Surpassed 6 Trillion in Revenue, So Why Did Profit Fall? - 2026.10.27

Hey, it’s Carrot 🥕 Today, let’s dig straight into LG Innotek’s third-quarter results. Revenue hit a record, but profit took a sharp dive—honestly, that’s a head-scratcher.

First-ever 6 Trillion in Revenue, but Profit Nearly Halved 📊

According to the preliminary results the company announced on the 27th, third-quarter revenue came to 6,367,100,000,000 KRW, up 18.6% year over year ^[1]. It was the first quarter in which revenue topped 6,000,000,000,000 KRW, and the key point is that sales increased across all business segments ^[1]. But operating profit was 94,800,000,000 KRW, down 53.4% ^[2]. The breaking news is that it also fell short of market expectations ^[2]. Revenue rose, but less was left over as profit—I had to punch the numbers into my calculator twice 🧮

The Exchange Rate and iPhone Are the Real Wild Cards 💡

Yonhap Infomax reported on LG Innotek’s exposure to exchange-rate movements, noting that the iPhone duo with cracked screens was a key variable for its results ^[3]. Another article explained the exchange-rate story a little differently ^[4]. Since the accounts seem to point in different directions, I’ll just note that the exchange rate is a factor to watch. Still, there’s also talk that AI investment is reviving demand for substrates ^[4]. I’m curious whether that tailwind for substrates will show up in the actual numbers. Wow, this is a pretty interesting setup.

Experts Are Divided 🎯

The Hankyoreh said earnings outlooks tied to AI vary by company, classifying Samsung Electro-Mechanics, which makes server components, as looking bright, and LG Innotek, which makes camera modules, as looking cloudy ^[5]. That’s the Hankyoreh’s classification, nothing more. Saengsaeng Biz Plus used the phrase “a complete mess” to describe LG Innotek’s profitability in its financial statements column ^[6]; that, too, should be read as that outlet’s analysis. One outlet forecast that third-quarter revenue would rise from the previous quarter while operating profit would fall sharply ^[7]. A forecast is only a forecast, so it’ll be interesting to see how it compares with the actual results.

Substrates and Automotive Electronics Are the Next Plays—Watch the Chart, Too ✨

ER Economic Review reported that LG Innotek is reorganizing its business focus around PC CPU substrates and automotive AP modules while pursuing expansion into new businesses ^[8]. Substrates and automotive electronics look like the keys to the next chapter. On the chart, the closing price on the 27th was ₩373,500, up 1.77% from the previous day, and the recent trading range ran from the October 26 low of ₩362,500 to the October 19 high of ₩431,000. The top of the range is pretty high, so as someone who fixates on numbers, my eyes keep going back to it. For real, I think Carrot should wait until the numbers speak first. No going all-in on buying, no going all-in on selling—my rule is to act only when support breaks.

Here’s the question that remains: the strength in revenue is clear, but why was the weakness in profit so severe? The links between exchange rates, iPhone factors, and substrate demand still aren’t fully clear. Aren’t you curious to see how these three factors line up in the next set of numbers?

📰 Reference News (8)

4

LG Innotek Hit by Exchange-Rate Headwinds… Cracked-Screen iPhone Duo

네이버뉴스 · 2026.10.27

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5

AI Earnings Outlooks Diverge… ‘Server Components’ Bright for Samsung Electro-Mechanics, ‘Camera Modules’ Cloudy for LG Innotek - Hankyoreh

한겨레 · 2026.10.26

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7

LG Innotek: Third-Quarter Revenue Forecast at 5,900,000,000,000 KRW—What About Operating Profit?

네이버뉴스 · 2026.10.27

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8

LG Innotek Refocuses on PC CPU Substrates and Automotive AP Modules… Seeks to Expand New Businesses - ER Economic Review

ER 이코노믹리뷰 · 2026.10.27

📰 View original