LG Reports Strong Q3 2025 Results Amid Market Challenges

Home appliances and vehicle solutions drive second-highest Q3 revenue in company history.

LG Electronics has released its financial results for the third quarter of 2025, reporting consolidated revenue of KRW 21.87 trillion and operating profit of KRW 688.9 billion. Despite external pressures such as U.S. tariffs and a slowdown in the electric vehicle market, the company’s Home Appliance Solution (HS) and Vehicle Solution (VS) divisions delivered solid performances. These results reflect LG’s strategic shift toward qualitative growth, with increased emphasis on B2B solutions, subscription services, and direct-to-consumer models. Notably, B2B revenue rose 2 percent year-on-year to KRW 5.9 trillion, while appliance subscription services grew 31 percent to KRW 700 billion.

Home Appliances and Subscription Services

The HS division posted revenue of KRW 6.58 trillion and operating profit of KRW 365.9 billion, driven by a dual strategy targeting both premium and mass-market segments. Continued expansion in online and subscription-based services contributed to the division’s resilience against tariff-related pressures. Operational efficiency and production site optimization played a key role in maintaining profitability. Looking ahead, LG expects the global home appliance market to remain subdued, prompting further investment in cost structure improvements and digital service growth.

To navigate competitive pressures, the HS division plans to enhance its subscription offerings and streamline fixed costs. The company remains committed to qualitative growth, focusing on long-term value rather than short-term volume. As demand recovery lags, LG aims to maintain profitability through targeted operational adjustments. These efforts are expected to support stable performance in the fourth quarter.

Vehicle and Media Performance

The VS division achieved KRW 2.65 trillion in revenue and KRW 149.6 billion in operating profit, marking its best third-quarter results to date. For the first time, the operating margin exceeded 5 percent, reflecting improved product mix and cost efficiency. Although changes in U.S. EV subsidy policies may pose short-term risks, LG intends to preserve profitability through continued optimization. The division’s focus on electric vehicle components and automotive solutions positions it well for future growth.

Meanwhile, the MS division reported KRW 4.65 trillion in revenue but faced an operating loss of KRW 302.6 billion. Increased marketing expenses and voluntary retirement costs affected profitability. LG plans to improve efficiency in its TV business and expand the webOS platform through diversified content and advertising. The company also aims to strengthen its presence in Global South markets, where consumer demand remains relatively stable.

Eco Solutions and Data Center Expansion

The ES division recorded KRW 2.17 trillion in revenue and KRW 132.9 billion in operating profit, with modest year-on-year growth. Domestic sales and subscription services supported revenue, though expanded investments led to a slight decline in profit. LG is exploring new opportunities in commercial HVAC systems and industrial chillers, with a focus on region-specific product launches. Recent contracts for AI data center cooling solutions across multiple continents signal progress in this area.

These projects are expected to serve as strategic references for future expansion. LG is also preparing to commercialize next-generation liquid cooling technologies for data centers. Partnerships aimed at advancing immersion cooling systems are underway, reflecting the company’s commitment to innovation. As demand for efficient data infrastructure grows, LG’s eco-focused solutions may play a key role in shaping the sector.