LG Electronics Releases Fourth-Quarter and Full-Year 2025 Financial Results

LG Electronics reported record annual revenue for 2025, marking its second consecutive year of all‑time‑high results.
Several business units continued their decade‑long growth despite tariff pressures and a cooling electric‑vehicle market.
Operating profit declined due to higher marketing spending and one‑off restructuring costs, but the company expanded its B2B and subscription‑based businesses.

Record Revenue Amid Market Pressures

LG Electronics closed 2025 with consolidated revenue of KRW 89.2 trillion (≈ USD 61.95 billion) and operating profit of KRW 2.48 trillion (≈ USD 1.72 billion). The company achieved its highest annual revenue for the second year in a row, supported by continued growth in the Home Appliance Solution (HS) and Vehicle Solution (VS) units. Both divisions extended their decade‑long expansion despite U.S. tariff‑related cost burdens and weaker global EV demand. Their sustained performance contributed significantly to the company’s overall revenue momentum.

Operating profit, however, declined year‑on‑year. Marketing spending rose for display‑based products as competition intensified and demand recovery lagged. LG also recognized several hundred billion KRW in one‑off costs tied to organizational optimization, primarily voluntary retirement programs. These measures are intended to create a more flexible cost structure over the medium to long term.

Expansion in B2B and Non‑Hardware Segments

LG continued to advance its strategic growth areas, focusing on higher‑value and more resilient business models. These include B2B operations such as vehicle solutions, HVAC systems and component solutions, as well as non‑hardware businesses like the webOS platform and maintenance services. Direct‑to‑consumer channels, including subscription‑based offerings and online sales, also expanded. B2B revenue reached KRW 24.1 trillion (≈ USD 16.75 billion), up 3 percent year‑on‑year, while combined operating profit from VS and ES surpassed KRW 1 trillion (≈ USD 694.8 million) for the first time.

Subscription‑based business revenue grew 29 percent year‑on‑year, approaching KRW 2.5 trillion (≈ USD 1.74 billion). This reflects the company’s ongoing shift toward recurring‑revenue models. LG expects these areas to play a larger role in stabilizing long‑term profitability as hardware‑centric markets face cyclical fluctuations.

HS Company: Strong Revenue and Operational Adjustments

The Home Appliance Solution (HS) Company reported revenue of KRW 26.13 trillion (≈ USD 18.16 billion) and operating profit of KRW 1.28 trillion (≈ USD 889 million). Revenue reached an all‑time high, and operating profit showed slight improvement when excluding one‑off restructuring costs. HS mitigated U.S. tariff‑related pressures through production footprint adjustments, pricing strategies and cost‑efficiency measures. These efforts helped maintain stable performance in a challenging environment.

In 2026, HS plans to expand its AI‑powered appliance lineup and strengthen its position in emerging markets. The company will continue developing built‑in appliances, component solutions and AI Home platforms. Home robotics will also remain a focus as part of its evolving portfolio strategy. These initiatives aim to support sustained growth across diverse product categories.

MS Company: Display Market Challenges Continue

The Media Entertainment Solution (MS) Company posted revenue of KRW 19.43 trillion (≈ USD 13.49 billion) and an operating loss of KRW 750.9 billion (≈ USD 521.7 million). Performance declined year‑on‑year due to delayed demand recovery and heightened competition in the global display market. The company faced pressure across both OLED and LCD segments as market conditions remained difficult. These challenges contributed to the unit’s overall negative profitability.

For 2026, MS plans to strengthen its product lineup across OLED and LCD categories, including models featuring Micro RGB technology. The company aims to expand demand for lifestyle‑oriented products such as StanbyME and Easy TV. Meanwhile, the webOS‑based advertising and content business is expected to maintain steady growth. Continued investment in content and partnerships will support this trajectory.

VS and ES Companies: Record Gains and Future‑Focused Development

The Vehicle Solution (VS) Company recorded revenue of KRW 11.14 trillion (≈ USD 7.74 billion) and operating profit of KRW 559 billion (≈ USD 388.5 million), both reaching record highs. Strong conversion of its order backlog supported the division’s performance. Despite expectations of near‑term uncertainty in global automotive demand, VS plans to reinforce collaboration with OEM partners. The company will also focus on improving operational efficiency to maintain stable profitability.

The Eco Solution (ES) Company reported revenue of KRW 9.32 trillion (≈ USD 6.48 billion) and operating profit of KRW 647.3 billion (≈ USD 449.7 million). Revenue increased year‑on‑year, and operating profit rose slightly when excluding one‑off costs. Demand for high‑efficiency solutions, including heat pumps using eco‑conscious refrigerants, is expected to grow in overseas markets in 2026. ES will continue pursuing opportunities in AI data‑center cooling and next‑generation liquid‑cooling technologies, including immersion‑cooling partnerships.