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LG Electronic's operating profit down year-on-year, but better than expectations

Published: 13 Oct. 2025, 19:00

The photo shows LG Electronics’ headquarters in Yeongdeungpo District, western Seoul on July 5, 2024. [YONHAP]

LG Electronics reported an operating profit of 688.9 billion won ($482.7 million) for the third quarter this year, down 8.4 percent from a year earlier but higher than market expectations of around 603.5 billion won.

Revenue came to 21.88 trillion won, a 1.4 percent year-on-year decline, according to the company’s regulatory filing on Monday. LG did not disclose detailed figures for each business unit in the preliminary results.

The company’s automotive electronics division helped offset sluggish performance in its home appliance and TV businesses. LG said its Vehicle Solution (VS) division achieved record-high profitability thanks to strong sales of premium in-vehicle infotainment systems and other high-value-added components.

The VS division has continued to post robust results, having logged record quarterly revenue of 2.06 trillion won and operating profit of 250.5 billion won in the second quarter this year.

Another key growth driver was the company’s heating, ventilation and air conditioning (HVAC) business, which LG has identified as a future growth engine. The Eco Solution (ES) division, which oversees HVAC operations, benefited from a string of major overseas orders for AI data center cooling systems and large-scale commercial facilities in North America, Latin America, the Middle East and Asia.

Recent projects include supplying high-efficiency chillers for a Saudi Arabian mixed-use complex, HVAC systems for a mega logistics center in Singapore and air conditioning equipment for Maya-Maya Airport in Congo.

However, LG’s core home appliance and TV segments continued to face challenges. The Home Appliance Solution (HS) division, which produces refrigerators and washing machines, had posted record quarterly earnings in the second quarter this year but is now grappling with U.S. tariff burdens and sluggish global demand recovery.

LG said it plans to optimize production operations to minimize the impact of tariffs and focus on expanding subscription-based services to boost profitability.

Models introduce LG Electronics’ cooling distribution unit (CDU) at the Data Center World Asia 2025 in Singapore on Oct. 8, where LG Electronics, LG CNS and LG Energy Solution jointly showcased their integrated “One LG” solutions. [LG ELECTRONICS]

The TV business in the company’s Media Entertainment Solution (MS) division likely saw a wider operating loss due to increased marketing costs amid fierce competition and expenses related to recent voluntary retirement programs. Analysts estimate the loss at just over 200 billion won, up from 191.7 billion won in the previous quarter.

To improve profitability, LG said it will enhance its webOS smart TV platform and diversify revenue sources through advertising and content sales.

Looking ahead, the company expects growth momentum from “Global South” markets, particularly as LG Electronics India is set to complete its local stock listing on Tuesday.

“LG Electronics will accelerate business transformation and future growth by focusing on qualitative expansion — strengthening business-to-business areas such as vehicle components and HVAC, and scaling up non-hardware ventures like subscription services and webOS,” the company said in a statement.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE GA-RAM [[email protected]]