2 weeks Ago By Lee Jun-sung
LG Electronics Inc. today reported consolidated revenue of KRW 22.74 trillion and an operating profit of KRW 1.
26 trillion for the first quarter of 2025. This marks the highest first-quarter revenue in the company’s history and the sixth consecutive year that operating profit exceeded KRW 1 trillion in this quarter. The strong performance was driven by qualitative growth across key business sectors, particularly in B2B, non-hardware segments such as subscriptions and the webOS platform, as well as direct-to-consumer (D2C) sales.
The Vehicle Solutions and Heating, Ventilation, and Air Conditioning (HVAC) segments—critical to LG’s B2B strategy and future growth—achieved record quarterly revenue and operating profit. Combined operating profit from the Vehicle Solution Company and Eco Solution Company rose by 37.2% year-over-year, with revenue increasing by 12.
3%. LG's Home Appliance Solution Company, the company’s flagship business and main profit source, also recorded its highest-ever quarterly revenue while maintaining a leading position in the global market. The business is rapidly evolving through innovative models such as subscription services and D2C sales.
Meanwhile, the media and entertainment segment showed solid results, driven by continued growth in LG’s webOS-based advertising and content platform. The Home Appliance Solution Company reported first-quarter revenue of KRW 6.70 trillion and operating profit of KRW 644.
6 billion. Compared to the same period last year, revenue increased by 9.3%, setting a new record, while operating profit grew by 9.
9%. The company continues to lead the market while accelerating its subscription and D2C sales growth. Looking ahead to the second quarter, the company anticipates increased uncertainty due to changing global trade policies and heightened market competition.
To address these challenges, LG plans to expand its portfolio of new and volume-zone products while enhancing its focus on subscription and online businesses. Additional priorities include seizing opportunities in B2B areas such as built-in appliances and external sales of key components like motors and compressors. Profitability efforts will center on enhancing cost competitiveness by optimizing operational efficiency.
The LG Media Entertainment Solution Company reported first-quarter revenue of KRW 4.95 trillion and operating profit of KRW 4.9 billion.
Although TV demand remained soft, growth in webOS-based advertising and content services significantly contributed to performance. Revenue remained stable compared to the previous year, although profitability was affected by rising LCD panel prices and increased marketing expenditures. In the second quarter, the company aims to create synergies across its display-focused businesses, encompassing TVs, commercial displays, and IT products such as laptops and monitors.
As the market gradually recovers, the company will prioritize profitability, particularly through premium products. The expanding webOS-based platform will seek to enhance geographic reach and product diversity while forming strategic partnerships with content providers to sustain its growth momentum. The LG Vehicle Solution Company achieved its highest quarterly revenue and operating profit yet, reporting revenue of KRW 2.
84 trillion and operating profit of KRW 125.1 billion. Growth is driven by a strong order backlog totaling KRW 100 trillion, and profitability has improved in the in-vehicle infotainment segment, where the share of premium products is steadily rising.
In the second quarter, the company aims to maintain revenue growth and establish a stable profit structure by expanding high-value product sales, optimizing operations in the EV component sector, and enhancing resource efficiency. The LG Eco Solution Company also reported record quarterly revenue and operating profit. First-quarter revenue reached KRW 3.
05 trillion, with operating profit of KRW 406.7 billion, resulting in a robust operating margin of 13.3%.
Year-over-year, revenue increased by 18.0%, and operating profit grew by 21.2%.
Since the start of 2025, LG has operated its HVAC business as an independent division, resulting in notable performance improvements due to efficient resource allocation and a B2B-focused organizational structure. Alongside the Vehicle Solution Company, the Eco Solution Company serves as a core driver of LG’s B2B growth. In the second quarter, the company will aim to expand sales of new residential HVAC products and secure commercial air conditioning contracts in emerging markets.
It also plans to target large-scale industrial and power generation projects, including AI data centers, by leveraging its ultra-large chiller solutions..
