LG Electronics Releases Fourth-quarter and Full-year 2025 Financial Results

LG Electronics Inc. (LG) announced its financial results for the full year and fourth quarter of 2025, reporting consolidated revenue of USD 61.9 billion and operating profit of USD 1.7 billion.

LG recorded its highest annual revenue for the second consecutive year. Despite U.S. tariff-related cost pressures, HS delivered sustained growth, while VS maintained solid performance amid a slowdown in electric vehicle demand – both contributing meaningfully to the company’s record revenue. As a result, the two Companies have now posted growth for ten consecutive years since 2015.

Operating profit declined year-on-year. Marketing expenditures increased for display-based products amid delayed demand recovery and intensifying competition. In addition, several hundred billion KRW in one-off costs related to organizational optimization were recognized in the second half of the year, primarily associated with company-wide voluntary retirement programs aimed at improving workforce efficiency. These measures are expected to contribute to a more flexible cost structure over the mid- to long term.

LG continued to deliver progress across its key qualitative growth areas, centered on higher-value and more resilient business models. These include B2B segments such as vehicle solutions, HVAC and component solutions; non-hardware businesses including the webOS platform and maintenance services; and D2C channels encompassing subscription-based models and online sales. B2B revenue increased 3 percent year-on-year to USD 16.7 billion. Combined operating profit from VS and ES – LG’s two core B2B pillars – exceeded USD 693.96 million for the first time. Revenue from subscription-based business models rose 29 percent year-on-year, approaching USD 1.7 billion.

2025 Results & Outlook by Company

The LG Home Appliance Solution (HS) Company  

HS reported revenue of USD 18.13 billion and operating profit of USD 888.27 million. Revenue reached an all-time high, while operating profit increased slightly when excluding one-off costs. Through production footprint optimization, pricing adjustments and cost improvements, HS demonstrated resilience in responding to U.S. tariff-related pressures.

In 2026, HS plans to sustain growth by expanding its AI-powered appliance lineup and strengthening its presence in emerging markets. The Company will also continue developing built-in appliances, component solutions, AI Home platforms and home robotics as part of its evolving portfolio strategy.

The LG Media Entertainment Solution (MS) Company  

MS posted revenue of USD 13.48 billion and an operating loss of USD 521 million, reflecting a year-on-year decline. Performance was affected by delayed demand recovery and intensified competition in the global display market.

In 2026, MS plans to strengthen its product lineup across both OLED and LCD segments, including offerings incorporating Micro RGB technology. The Company will also continue expanding demand for lifestyle-oriented products such as StanbyME and Easy TV. Meanwhile, the webOS-based advertising and content business is expected to maintain solid growth through continued content investment and expanded partnerships.

The LG Vehicle Solution (VS) Company

VS recorded revenue of USD 7.73 billion and operating profit of USD 387.92 million, achieving record highs in both metrics. Performance was supported by strong conversion of order backlog.

While global automotive demand is expected to face near-term uncertainty amid heightened macroeconomic volatility, VS plans to reinforce collaboration with OEM partners and further improve operational efficiency to support stable profitability. The Company will also continue strengthening capabilities in future mobility solutions, including software-defined vehicles and AI-defined vehicles.

The LG Eco Solution (ES) Company  

ES reported revenue of USD 6.46 billion and operating profit of USD 449.2 million. Revenue increased year-on-year, and operating profit rose slightly when excluding one-off costs.

In 2026, demand for high-efficiency solutions – including heat pumps using eco-conscious refrigerants – is expected to expand, particularly in overseas markets. ES will continue pursuing opportunities in AI data center cooling, advancing commercialization of next-generation liquid cooling technologies and expanding partnerships for the development of immersion cooling solutions.