LG Electronics Surpasses 1 Trillion Won Operating Profit with 'Surprise Performance'... Breaks Q2 Record (Update)

"Continued 'Balanced Qualitative Growth' in Core and Future Growth Businesses"

LG Electronics has set new records for sales and operating profit in the second quarter. It posted a 'surprise performance' that exceeded market estimates. Not only its core businesses such as washing machines, refrigerators, and air conditioners, but also new businesses like software platforms and automotive components (electric and electronic equipment for vehicles) showed strong results.

Jo Joo-wan, CEO of LG Electronics, is explaining the 'Future Vision 2030' at an LG Electronics press conference held in July last year at LG Science Park in Magok-dong, Gangseo-gu, Seoul.
[Photo by Yonhap News]

On the 5th, LG Electronics announced preliminary consolidated sales of KRW 21.7009 trillion and operating profit of KRW 1.1961 trillion for the second quarter. These results surpassed the securities market consensus estimates of KRW 21.3258 trillion in sales and KRW 988.1 billion in operating profit.

Both sales and operating profit marked the highest records for the second quarter. Operating profit increased by 61.2% compared to the same period last year. It exceeded KRW 1 trillion for the first time in the second quarter. Sales also rose by 8.5% year-on-year.

Expanding the scope to the first half of the year, sales increased by 5.9% and operating profit by 13% compared to the same period last year. LG Electronics’ first-half sales surpassed KRW 40 trillion for the third consecutive year, and operating profit exceeded KRW 2 trillion for the fourth consecutive year.

LG Electronics Q2 Preliminary Earnings

LG Electronics emphasized that both its core and growth businesses delivered strong results, describing this as 'qualitative growth.' First, the core home appliance business (H&A Division) continues to show outstanding growth compared to peers in the industry. The air conditioner business, which experienced seasonal peak demand in the second quarter, contributed significantly to the results. In particular, sales of the AI-equipped Whisen Stand Air Conditioner increased by more than 80% year-on-year last month.

The automotive components business (VS Division) is actively responding to the shift of automakers toward SDV (Software-Defined Vehicles). It is expanding the proportion of premium product sales and introduced the LG Alphaware solution. The home entertainment business (HE Division) faced rising costs for LCD panels and other components, but premium OLED TV sales in advanced markets such as Europe are gradually recovering. The new business of webOS content and services is increasingly contributing to performance. The business solutions division (BS Division) is targeting the market with premium IT products such as the on-device AI laptop 'LG Gram' and the world's first gaming monitor with variable resolution and refresh rate.

LG Electronics explained that efforts to improve business structure and change business methods have been key factors in increasing performance. Through these changes, the company enhances the potential of existing businesses, discovers future growth engines, and reinvests for additional growth, creating a virtuous cycle.

The B2B business continues to show steady growth. Especially as AI emerges as an inflection point in the industry, the HVAC (Heating, Ventilation, and Air Conditioning) business, led by chillers, is expected to find additional growth opportunities in the AI infrastructure sector. In the B2C business, new business models such as subscriptions for 22 types of home appliances and content and service businesses act as driving forces to overcome market uncertainties and growth limitations.

LG Electronics plans to accelerate changes centered on customer relationships. Having recently completed the acquisition of the smart home platform company AtHome, it will actively promote personalization and service expansion in the home appliance business following TV. The number of users of 'LG Channels,' the flagship webOS content offering free access to over 3,500 channels in 28 countries, has surpassed 50 million. LG Electronics is expanding the webOS content and service business from TV to IT and automotive infotainment sectors.