LG Electronics Achieves Record Q1 Earnings Driven by Robust Appliance Sales and B2B Growth
LG Electronics has announced a record-breaking first quarter for revenue and a significant rebound in operating profit, surpassing market expectations. This strong performance is attributed to robust results across its core business segments.
The global technology leader reported consolidated revenue of 23.73 trillion won ($15.7 billion) for the January-March period, marking a 4.4 percent increase year-over-year and setting a new record for first-quarter sales. Operating profit surged by 32.9 percent year-on-year, reaching 1.67 trillion won, considerably exceeding market forecasts.
Industry analysts, as compiled by FnGuide, had estimated LG’s Q1 revenue at 23.32 trillion won and operating profit at 1.38 trillion won. This positive outcome follows a challenging fourth quarter in 2025, where LG recorded its first quarterly operating loss since 2016, at 109.4 billion won.
This impressive financial turnaround was powered by consistent growth in key areas like LG home appliances, alongside the strategic expansion of its business-to-business (B2B) segments, including advanced automotive components. Profitability was further bolstered by proactive responses to US tariff policies, optimized global production facilities, and a strengthened cost structure. The increasing contribution from high-margin businesses, such as platform services, appliance subscription models, and expanding online sales channels, also played a crucial role in supporting these strong earnings.
The Home Appliance & Air Solution division demonstrated sustained growth by successfully targeting both premium and high-volume market segments. This division also saw continued expansion in online sales and innovative appliance subscription services. LG Electronics remains committed to improving margins through continuous cost structure innovation, despite ongoing pressures from raw materials prices. Furthermore, the company is maintaining strategic investments in future growth areas, including home robotics and essential robot components like actuators.
LG’s Home Entertainment division returned to profitability in the first quarter and significantly improved its margins compared to the previous year, thanks to enhanced operational efficiencies. The rapidly growing webOS platform business continued to contribute substantially, driving a positive shift in the division’s overall business structure. For the current year, LG plans to enhance its premium TV lineup, featuring advanced OLED TVs, high-end LCD models including micro RGB technology, and innovative lifestyle TVs.
The Vehicle component Solutions division achieved stable revenue growth, supported by a substantial order backlog. Profitability within this division also saw improvements, driven by effective cost optimization efforts and favorable foreign exchange rates.
Conversely, the Eco-Solution division experienced a decline in both revenue and operating profit year-on-year, primarily due to external uncertainties, including geopolitical risks in the Middle East. Despite these challenges, LG plans to expand its presence in critical future markets. This includes developing AI data center cooling solutions based on next-generation liquid cooling technologies, alongside its growing energy transition businesses, such as high-efficiency heat pumps.
LG Electronics reiterated its commitment to flexibly respond to ongoing geopolitical uncertainties, including fluctuations in raw material costs and logistics expenses, to minimize their potential impact on its global operations.
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