LG Releases Second-Quarter 2024 Financial Results
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By News Reporter
Strong Performance in Home Appliance and Vehicle Solutions Drives
Second-Highest Third-Quarter Revenue in Company History
SEOUL, Oct. 31, 2025 — LG Electronics Inc. (LG) today announced consolidated revenue of KRW 21.87 trillion and operating profit of KRW 688.9 billion for the third quarter of 2025.
The Home Appliance Solution (HS) Company and Vehicle Solution (VS) Company delivered strong performances despite external challenges such as U.S. tariffs and a slowdown in the electric vehicle (EV) market. These results reflect LG’s ongoing transformation of its business portfolio and commitment to qualitative growth, encompassing B2B solutions such as vehicle and HVAC systems, expanding non-hardware businesses like subscriptions and webOS, and innovative direct-to-consumer business models.
In the third quarter, LG’s B2B revenue grew 2 percent year-on-year to KRW 5.9 trillion, while revenue from appliance subscription services reached KRW 700 billion, up 31 percent year-on-year.
Q3 2025 Results & Outlook by Company
LG Home Appliance Solution (HS) Company
The HS Company reported revenue of KRW 6.58 trillion and operating profit of KRW 365.9 billion. Growth was driven by a successful two-track strategy targeting both premium and mass-market segments, alongside continued expansion in subscription and online businesses. Production site optimization and operational efficiency improvements helped offset much of the U.S. tariff impact, resulting in higher year-on-year profitability.
Looking ahead to the fourth quarter, the global home appliance market is expected to remain challenging due to sluggish demand recovery and intensified competition. The Company plans to continue expanding its subscription and online businesses and maintain focus on furthering its qualitative growth efforts. It will also pursue cost structure enhancements and fixed cost reductions to improve profitability year-on-year.
LG Media Entertainment Solution (MS) Company
The MS Company recorded revenue of KRW 4.65 trillion and an operating loss of KRW 302.6 billion in the third quarter. Profitability was impacted by increased marketing investments to address intensifying competition and one-time expenses related to voluntary retirements.
The Company remains focused on improving operational efficiency and profitability in its TV business while expanding the webOS platform through advancements in advertising and content diversification. It also plans to strengthen its presence in Global South markets, where demand remains relatively resilient.
LG Vehicle Solution (VS) Company
The VS Company recorded revenue of KRW 2.65 trillion and operating profit of KRW 149.6 billion. Revenue reached an all-time third-quarter high, while operating profit achieved the highest quarterly level since the Company’s establishment. The operating profit margin exceeded 5 percent for the first time.
While external factors such as changes to U.S. EV subsidy policies may present short-term challenges in the fourth quarter, the Company aims to maintain stable profitability through ongoing product mix optimization, cost structure improvements and efficiency initiatives.
LG Eco Solution (ES) Company
The ES Company reported revenue of KRW 2.17 trillion and operating profit of KRW 132.9 billion. Revenue increased slightly year-on-year, supported by stronger domestic sales and continued growth in subscription and online businesses. Operating profit declined modestly due to expanded investments.
The Company plans to strengthen growth momentum through region-specific product launches and explore new opportunities in commercial HVAC systems and industrial and power generation chillers. It has recently secured a series of AI data center cooling solution contracts across North America, Latin America, the Middle East and Asia, demonstrating tangible progress. The Company aims to use these projects as strategic references to further expand its market presence. In parallel, it is preparing for the commercialization of next-generation liquid cooling solutions for data centers and broadening partnerships to advance immersion cooling technologies.
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By News Reporter
Strong Performance in Key and Future-Oriented Businesses Drives Q3 Results
Above Market Expectations
SEOUL, Oct. 13, 2025 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the third quarter of 2025, reporting consolidated revenue of KRW 21.88 trillion and an operating profit of KRW 688.9 billion.
Despite external headwinds, including escalating U.S. tariffs, both figures surpassed market expectations. Revenue marked the second-highest ever for a third quarter, while operating profit exceeded recent market forecasts by more than 10 percent. Profitability declined year-on-year due to several non-recurring factors, including higher tariff burdens under changing trade conditions.
Nevertheless, LG successfully offset market concerns and exceeded expectations, driven by solid performances across key and future-oriented businesses. The home appliance solutions business maintained strong competitiveness and market leadership, while the vehicle solutions business achieved record-high profitability.
LG continues to reinforce its business fundamentals through a focus on qualitative growth – emphasizing B2B operations such as vehicle solutions and HVAC, expanding non-hardware platforms including appliance subscriptions and webOS, and strengthening its online business. In particular, the IPO of LG Electronics India Limited is expected to provide significant funding to accelerate business structure improvements and future growth initiatives.
The home appliance solutions business continued to face challenges from tariff pressures on U.S. exports and a delayed recovery in global demand. Despite these conditions, it sustained leadership in the premium segment and maintained stable performance in the mass market. These results were supported by optimized production operations, efficient resource allocation to mitigate tariff effects and steady growth in subscription-based appliance services.
The media and entertainment solutions business faced higher marketing costs as competition intensified in the global TV market. Moving forward, LG plans to enhance the competitiveness of the webOS platform to diversify its profit structure – focusing on advancing its advertising business and expanding content offerings. The company also plans to accelerate growth in the Global South, where TV demand remains relatively stable.
The vehicle solutions business is expected to have achieved record-breaking profitability in the third quarter, driven primarily by the strong performance of premium in-vehicle infotainment systems, which contributed to improved margins. The business is also broadening its portfolio beyond hardware to include vehicle content platforms, with continued growth expected based on a robust order backlog and improving operational efficiency across lighting and EV powertrain units.
In the eco solutions business, LG is actively expanding its footprint in future-oriented markets such as commercial HVAC systems and industrial and power plant chillers. The company has recently secured a series of large-scale projects – including AI data center cooling solutions – across North America, Latin America, the Middle East and Asia. As these projects progress, LG aims to leverage them as key references to further reinforce its long-term growth potential. In parallel, the company is preparing for the commercialization of liquid cooling solutions for data centers, a next-generation technology poised to become a major driver of future expansion.
These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics’ final earnings results, including net profit. Details regarding each division will be announced officially later this month.
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By News Reporter
Building a Stronger Foundation for Long-Term Qualitative Growth
Through Portfolio Shifts and Operational Resilience
SEOUL, July 25, 2025 — LG Electronics Inc. (LG) today announced consolidated revenue of KRW 20.74 trillion and operating profit of KRW 639.4 billion for the second quarter of 2025.
Both revenue and operating profit declined year-over-year, primarily due to continued global market softness, increased tariff burdens driven by changes in U.S. trade policy, and intensified competition. Rising costs, including logistics expenses, also weighed on overall profitability compared to the same period last year.
Despite these challenges, the Home Appliance Solution (HS), Vehicle Solution (VS) and Eco Solution (ES) Companies delivered strong performance, each posting year-over-year increases in both revenue and operating profit. All three Companies achieved their highest-ever second-quarter results. In particular, the VS Company recorded its best quarterly revenue and operating profit in history.
Meanwhile, the Media Entertainment Solution (MS) Company reported an operating loss, primarily due to lower TV sales and increased marketing spend. However, its webOS platform-based advertising and content business continued to generate stable profits, increasingly contributing to the Company’s overall performance.
Building Stronger Foundation for Qualitative Growth
LG continues to strengthen its business fundamentals by focusing on B2B segments such as vehicle components and HVAC systems, non-hardware businesses including subscription services and the webOS platform, and direct-to-consumer (D2C) operations via its online platform, LGE.COM.
In Q2 2025, B2B revenue – including vehicle, component and smart factory solutions, as well as HVAC – rose 3 percent year-over-year to KRW 6.2 trillion. Revenue from the home appliance subscription business increased 18 percent, reaching KRW 630 billion.
These segments remain central to the company’s ongoing portfolio transformation. The B2B business is less susceptible to demand volatility and benefits from strong entry barriers due to solution-based customer relationships. Non-hardware businesses offer recurring revenue and high margins, while the D2C channel enhances profitability and brand equity.
Q2 2025 Results & Outlook by Company
LG Home Appliance Solution (HS) Company
The HS Company posted second-quarter revenue of KRW 6.59 trillion and operating profit of KRW 439.9 billion, achieving its highest-ever second-quarter performance. Despite soft consumer demand, tariff pressures and rising freight costs, the Company maintained strong global competitiveness. Its dual-track strategy – targeting both premium and mass-market segments – continued to drive solid results. The subscription model business continued its rapid expansion. Operational efficiencies and production optimization helped offset increased costs and support profitability.
Looking ahead, market recovery is expected to remain gradual amid heightened competition. The Company will focus on expanding its subscription and D2C businesses and pursue additional cost improvements to help mitigate U.S. tariff impacts. While logistics cost pressures are projected to ease slightly compared to late 2024 and early 2025, the Company plans to carefully manage marketing expenditures to sustain or exceed last year’s level of operating profit.
LG Media Entertainment Solution (MS) Company
The MS Company posted second-quarter revenue of KRW 4.39 trillion and an operating loss of KRW 191.7 billion, primarily due to softened demand leading to lower TV sales and increased marketing expenses in response.
Going forward, the Company will focus on enhancing operational efficiency across all business segments. It plans to expand its presence in Global South markets such as India, where demand remains relatively strong. Continued growth is also expected in the webOS platform business, with new content offerings in areas such as gaming and digital art.
LG Vehicle Solution (VS) Company
The VS Company generated record second-quarter revenue of KRW 2.85 trillion and operating profit of KRW 126.2 billion – the highest in its history. Performance was supported by a robust order backlog and increased OEM vehicle sales, particularly in Europe.
A strategic shift toward premium in-vehicle infotainment (IVI) systems significantly enhanced profitability, while operational efficiency improvements in electric vehicle components and lighting systems further bolstered results. Moving forward, the Company will focus on strengthening relationships with key customers and maintaining profitability through ongoing efficiency gains.
LG Eco Solution (ES) Company
The ES Company achieved second-quarter revenue of KRW 2.64 trillion and operating profit of KRW 250.5 billion, marking a record for second-quarter performance. This growth was driven by strong demand for residential air conditioners in Korea and continued expansion in the commercial and industrial HVAC segments. Higher sales volumes boosted operating leverage, leading to improved profitability.
Looking ahead to the second half of the year, the Company aims to capture replacement demand for high-efficiency products while expanding its product portfolio to support long-term growth. It also plans to explore new opportunities in emerging sectors such as AI data centers by enhancing its commercial HVAC and industrial chiller capabilities – including systems for power generation – and scaling up its liquid-cooling solutions business.
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By News Reporter
Company Plans to Focus on Reinforcing its Business Fundamentals by
Prioritizing Areas of Qualitative Growth
SEOUL, July 7, 2025 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the second-quarter of 2025, reporting a consolidated revenue of KRW 20.74 trillion and operating profit of KRW 639.1 billion.
Both revenue and operating profit declined year-over-year. The slowdown reflects continued weakness in consumer sentiment across major markets and an increasingly challenging external environment. In particular, changes in U.S. trade policy led to higher tariff costs and intensified market competition, further weighing on performance.
Despite an unfavorable business environment, LG’s core businesses—including Home Appliances Solutions, as well as B2B-driven segments such as Vehicle Solutions and heating, ventilation and air conditioning (HVAC)—delivered solid performance and maintained sound profitability. However, the media and entertainment solutions business faced a challenging quarter due to slowdown in demand, higher LCD panel prices and increased marketing expenses amid intensifying competition. Profitability was also affected by increased costs, including U.S. general tariffs, steel and aluminum derivative tariffs, and logistics expenses.
In the second half, LG will focus on reinforcing its business fundamentals by prioritizing areas of “qualitative growth.” This includes expanding high-margin, stable-growth B2B sectors such as Vehicle Solutions and HVAC, scaling non-hardware businesses including webOS platform services and subscription-based models, and enhancing direct-to-consumer (D2C) sales through LGE.COM.
B2B operations offer greater resilience against demand and pricing volatility, making them well-suited for expanding solution-based businesses and establishing entry barriers through strong partnerships. Subscription models and platform-based services support recurring revenue and higher profitability, while D2C sales contribute to both improved profit structure and enhanced brand value.
The home appliance solutions business is maintaining a strong presence in the premium market and also achieving success in the volume zone lineups despite softening demand due to changes in U.S. trade policy and geopolitical risks in the Middle East, while its subscription model continues to perform steadily. In the second half, logistics costs are expected to ease, allowing the company to focus on securing sales, minimizing tariff impacts and ensuring a sound profit structure through operational efficiency.
The media and entertainment solutions business was impacted by price reductions aimed at addressing stagnant demand and higher marketing spend. In the second half, LG aims to further solidify its leadership in the premium OLED TV segment through the launch of new wireless products, while enhancing the competitiveness of the webOS platform by expanding into new content areas such as gaming and digital art.
The vehicle solutions business continues to grow steadily despite industry-wide challenges. Revenue growth and operational efficiency improvements have led to an increase in operating profit compared to the previous year. LG plans to drive sales of premium in-vehicle infotainment systems and diversify with new offerings like automotive content platforms.
In the HVAC business, LG will intensify its focus on commercial air conditioning systems and industrial cooling solutions—particularly by integrating AI-powered technologies into next-generation data center applications, expanding its AI data center (AIDC) business. The company also expects to complete the acquisition of European hot water solutions company OSO, supporting its expansion into the rapidly growing European Air-to-Water Heat Pump market through synergy and scale.
These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics’ final earnings results, including net profit. Details regarding each division will be announced officially later this month.
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By News Reporter
Company Achieves Record-Breaking First-Quarter Revenue
Driven by Balanced Growth in Home Appliance and B2B Sectors
SEOUL, April 24, 2025 — LG Electronics Inc. (LG) today announced consolidated revenue of KRW 22.74 trillion and operating profit of KRW 1.26 trillion for the first quarter of 2025. This marks the highest first-quarter revenue in the company’s history and the sixth consecutive year in which operating profit surpassed KRW 1 trillion during the first quarter. Strong performance was driven by qualitative growth across key business areas, especially in B2B, non-hardware segments (such as subscriptions and webOS platform) and direct-to-consumer (D2C) sales.
Vehicle solutions and heating, ventilation and air conditioning (HVAC) – both critical to LG’s B2B strategy and future growth – delivered record-breaking quarterly revenue and operating profit. Combined operating profit from the Vehicle Solution Company and Eco Solution Company increased 37.2 percent year-over-year, with revenue climbing 12.3 percent.
The Home Appliance Solution Company, LG’s flagship business and primary profit generator, also recorded its highest-ever quarterly revenue while maintaining global market leadership. The business is rapidly transforming through innovative models such as subscription services and D2C sales. Meanwhile, the media and entertainment segment demonstrated solid performance, led by continued growth in LG’s webOS-based advertising and content platform.
The LG Home Appliance Solution Company reported first-quarter revenue of KRW 6.70 trillion and operating profit of KRW 644.6 billion. Compared to the same period last year, revenue increased by 9.3 percent, setting a new record, and operating profit grew by 9.9 percent. The Company continues to maintain its market leadership while accelerating the growth of its subscription and D2C sales.
Looking to the second quarter, the Company anticipates increased uncertainty due to shifting global trade policies and increasing market competition. To address these challenges, the Company will expand its portfolio of new and volume-zone products, while deepening its focus on subscription and online businesses. Additional priorities include focusing on opportunities in B2B such as built-in appliances and external sales of key components like motors and compressors. Profitability efforts will center on enhancing cost competitiveness through optimizing operational efficiency.
The LG Media Entertainment Solution Company posted first-quarter revenue of KRW 4.95 trillion and operating profit of KRW 4.9 billion. While TV demand remained soft, growth in webOS-based advertising and content services made a greater contribution to performance. Revenue remained in line with the previous year, though profitability was impacted by rising LCD panel prices and higher marketing spend.
In the second quarter, the Company will seek to create synergies across its display-focused businesses, including TVs, commercial displays, and IT products such as laptops and monitors. While the market recovers slowly, the Company will emphasize profitability, particularly through premium products. The expanding webOS-based platform will aim to increase geographic reach and product base while advancing strategic partnerships with content providers to maintain its growth trajectory.
The LG Vehicle Solution Company recorded its highest-ever quarterly revenue and operating profit, with revenue of KRW 2.84 trillion and operating profit of KRW 125.1 billion. Growth continues to be powered by a robust order backlog totaling KRW 100 trillion. Notably, profitability improved in the in-vehicle infotainment business, where premium product share is steadily increasing. In the second quarter, the Company aims to sustain revenue growth and solidify a stable profit structure by expanding high-value product sales, optimizing operations in the EV component business, and enhancing resource efficiency.
The LG Eco Solution Company also achieved record-high quarterly revenue and operating profit. First-quarter revenue reached KRW 3.05 trillion, with operating profit of KRW 406.7 billion, resulting in a strong operating margin of 13.3 percent. Year-over-year, revenue rose 18.0 percent and operating profit grew 21.2 percent. Since the beginning of 2025, LG has operated its HVAC business as an independent division, with noticeable performance gains driven by efficient resource allocation and a B2B-focused organizational structure.
Alongside the Vehicle Solution Company, the Eco Solution Company serves as a core engine of LG’s B2B growth. In the second quarter, the Company will seek to expand sales of new residential HVAC products and secure commercial air conditioning contracts in emerging markets. It also plans to target large-scale industrial and power-generation projects – including AI data centers – by leveraging its ultra-large chiller solutions.
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