LG Q3 2025 Earnings Report: Key Financial Results Revealed
▼ Summary
– LG Electronics reported its second-highest third-quarter revenue ever at KRW 21.87 trillion, with strong performances from Home Appliance and Vehicle Solutions companies.
– The Home Appliance Solution Company achieved KRW 6.58 trillion in revenue, driven by premium and mass-market strategies and growth in subscription services.
– The Vehicle Solution Company reached a record third-quarter revenue of KRW 2.65 trillion and its highest-ever quarterly operating profit, exceeding a 5% margin for the first time.
– LG’s B2B revenue grew 2% year-on-year to KRW 5.9 trillion, while appliance subscription revenue surged 31% to KRW 700 billion, reflecting business transformation efforts.
– The Media Entertainment Solution Company reported an operating loss of KRW 302.6 billion due to marketing costs and one-time expenses, despite KRW 4.65 trillion in revenue.
LG Electronics has announced impressive financial results for the third quarter of 2025, achieving the second-highest Q3 revenue in the company’s history. Consolidated revenue reached KRW 21.87 trillion, with operating profit standing at KRW 688.9 billion. This robust performance was primarily fueled by outstanding results from the Home Appliance Solution and Vehicle Solution divisions, which successfully navigated external pressures including U.S. tariffs and a cooling electric vehicle market.
The company’s ongoing business transformation continues to yield positive outcomes, with a clear focus on qualitative growth across various sectors. This strategic shift encompasses B2B solutions in vehicle and HVAC systems, the expansion of non-hardware ventures like subscription services and the webOS platform, and the development of innovative direct-to-consumer business models. B2B revenue grew by 2 percent compared to the same period last year, reaching KRW 5.9 trillion, while revenue from appliance subscription services surged by an impressive 31 percent to KRW 700 billion.
Breaking down the performance by business unit reveals distinct trajectories. The Home Appliance Solution Company reported revenue of KRW 6.58 trillion and operating profit of KRW 365.9 billion. Their success stemmed from a dual strategy targeting both premium and mass-market consumers, coupled with continued expansion in subscription and online commerce. Operational efficiencies and production optimizations helped mitigate the financial impact of U.S. tariffs, leading to improved year-on-year profitability. Looking forward, the company anticipates ongoing challenges in the global appliance market but plans to maintain momentum through subscription growth and cost structure enhancements.
In contrast, the Media Entertainment Solution Company recorded revenue of KRW 4.65 trillion alongside an operating loss of KRW 302.6 billion. This profitability dip resulted from increased marketing expenditures to address competitive pressures and one-time expenses related to voluntary retirement programs. The division remains committed to improving operational efficiency in its television business while expanding the webOS platform through advertising advancements and content diversification. Strengthening its position in Global South markets, where demand shows greater resilience, forms another key priority.
The Vehicle Solution Company delivered particularly strong results, achieving record third-quarter revenue of KRW 2.65 trillion and operating profit of KRW 149.6 billion. This represents the highest quarterly operating profit since the company’s establishment, with the operating margin exceeding 5 percent for the first time. Despite potential headwinds from changes to U.S. EV subsidy policies, the company aims to sustain stable profitability through product mix optimization and ongoing efficiency initiatives.
Meanwhile, the Eco Solution Company reported revenue of KRW 2.17 trillion and operating profit of KRW 132.9 billion. Revenue saw modest year-over-year growth supported by stronger domestic sales and expansion in subscription and online businesses, though operating profit experienced a slight decline due to increased investment activities. The company is building growth momentum through region-specific product launches and exploring new opportunities in commercial HVAC systems and industrial chillers. Significant progress has been made in securing AI data center cooling solution contracts across North America, Latin America, the Middle East, and Asia. These projects serve as strategic references for market expansion while the company prepares for commercialization of next-generation liquid cooling solutions and advances immersion cooling technologies through expanded partnerships.
LG Electronics continues to demonstrate resilience and strategic agility across its diverse business portfolio.
(Source: MEA Tech Watch)