LG Electronics Inc. (LG) announced its preliminary earnings results for the fourth quarter and full year of 2025. The company reported consolidated revenue of KRW 89.2 trillion (KSh 7.9 trillion) and operating profit of KRW 2.48 trillion ( KSh 220.7 billion), marking record annual revenues, for the second consecutive year
Over the past five years, consolidated revenue has grown at a CAGR of about 9 percent. And while revenue expanded, operating profit declined year on year, primarily due to a slower-than-expected recovery in display-related demand and intensifying competition, which led to higher marketing expenditures.
In the second half of the year, LG also recognized non-recurring restructuring costs related to voluntary retirement programs implemented as part of a broader workforce optimization initiative. These measures are expected to reduce fixed-cost burdens over the mid-to-long term.
Meanwhile, its “qualitative growth” businesses continued to expand their contribution to overall performance. These include B2B segments such as vehicle solutions and HVAC, non-hardware businesses such as webOS and product-based services and D2C models including home appliance subscriptions and online sales. In 2025, these areas together accounted for nearly half of LG’s total revenue.
Looking ahead, LG will continue to strengthen its qualitative growth engines and advance toward a more profitability-driven growth structure. Despite continued U.S. tariff pressures expected in 2026, LG mitigated much of the impact in 2025 through improved manufacturing utilization and operational efficiency and intends to sustain this mitigation in 2026.
Home Appliance Business: Record Revenue
LG’s home appliance business is expected to post its highest revenue ever in 2025. The business maintained strong leadership in the premium segment while delivering stable performance in volume-driven markets. The continued expansion of the home appliance subscription model further supported growth.
In 2026, LG plans to strengthen growth by increasing investment in B2B areas, including built-in appliances and component solutions such as motors and compressors.
Display-Based Businesses: Operating Losses, but Platform Growth Continues
LG’s display-based businesses, including TV, IT and ID (Information Display), are expected to record an annual operating loss as weak demand and intensifying competition led to higher marketing expenditures. While product sales remained under pressure, the webOS platform business, backed by a global installed base of approximately 260 million devices, continued to grow at a double-digit rate.
LG plans to further strengthen webOS by expanding premium content partnerships and enhancing service offerings. The company will also broaden its lifestyle TV lineup and pursue new demand, particularly in high-growth emerging markets, including Africa.
Vehicle Solutions Business: Record Sales and Profitability
LG’s vehicle solutions business is expected to achieve record revenue and operating profit in 2025. Growth was driven by continued premiumization of in-vehicle infotainment systems and sustained efforts to improve operational efficiency.
In 2026, LG plans to maintain growth based on its strong order backlog while accelerating the evolution of its software-defined vehicle (SDV) technologies toward AI-defined vehicles (AIDVs), positioning itself as a key technology partner for next-generation mobility platforms.
HVAC Business: Expanding as a Core B2B Segment
LG’s HVAC business continues to strengthen as a core pillar of its B2B portfolio. The company is expanding from residential systems into commercial and industrial solutions, supported by growth in maintenance and service operations and the expansion of its global manufacturing network. Leveraging a portfolio of cooling technologies ranging from air-based to liquid cooling, LG is also pursuing long-term opportunities in AI data-centre cooling.
Fourth-Quarter 2025 Results
For the fourth quarter of 2025, LG reported consolidated revenue of KRW 23.85 trillion (approx. KSh 2.12 trillion) and an operating loss of KRW 109.4 billion (approx. KSh 9.7 billion).
These figures are tentative consolidated earnings based on K-IFRS and are provided for investor reference prior to LG Electronics’ final earnings results, including net profit.
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