LG Innotek lifts nine-month operating profit
Revenue reached 17.4 trillion won in the nine months through September, led by camera modules.
LG Innotek, a maker of electronic components, increased consolidated operating profit in the first nine months of 2026 to 636 billion won from 340 billion won a year earlier. Revenue rose from 14.3 trillion won in the comparable period, with higher sales and operating profit in its optical and packaging businesses.
The optical solutions business, which includes camera modules, accounted for 83.4% of revenue. Its sales rose 25% year on year to 14.5 trillion won, which the company attributed to greater adoption of high-specification camera modules by major customers. Operating profit in the division increased to 465 billion won from 202 billion won. The company said it was pursuing manufacturing improvements and optimizing its global production network to improve profitability.
The packaging solutions division also grew, as increased use of artificial intelligence lifted semiconductor demand, according to the company. The business, which sells semiconductor substrates and other products, recorded a 15% year-on-year rise in sales to 1.42 trillion won. Its operating profit rose to 136 billion won from 80.2 billion won.
The mobility solutions business, whose products include motors, sensors and communications components, reported higher sales of 1.48 trillion won, compared with 1.38 trillion won a year earlier. Its operating profit fell to 35 billion won from 58.4 billion won. The company did not give a reason for the decline in the supplied results.
The sales figures also showed the importance of a single customer. The filing's sales section puts revenue from the customer at 14.0 trillion won, while its consolidated notes put it at 14.2 trillion won. Both identify the customer as accounting for at least 10% of consolidated revenue, with sales spanning the optical and packaging businesses. Exports across the three businesses totaled 16.8 trillion won during the nine months.
In its third-quarter report, the company recorded camera module production at sites in Gumi, China and Vietnam of 368,141,000 units, with average capacity utilization at 81.7%. Semiconductor substrate utilization was 94.4%, and motor and sensor utilization was 60%.
Ongoing investment across the three divisions totaled 617 billion won for the January-to-September investment period. Optical solutions accounted for 433 billion won of that amount, with the investment directed at equipment and capacity expansion. The company said future investment is planned around its main businesses and newer businesses being developed for the medium to long term, and could change with company conditions and the market environment.
The company expects premium mobile demand to continue as AI features spread and new optical technologies are adopted. It also expects the lower- and mid-priced mobile market to contract as memory prices rise. In packaging, it expects greater demand for server substrates as technology companies expand data center investment, though it cautioned that US tariffs and changes in external conditions could affect the market.
LG Innotek plans to expand semiconductor substrate and sensing businesses alongside its optical operations. It is targeting at least 8 trillion won in revenue by 2030 from businesses it is developing, including autonomous-driving sensing, semiconductor substrates and robotics. The company also aims for a return on equity of at least 15%, with proceeds to be allocated between reinvestment and dividends.
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