LG Electronics Achieves Record Annual Sales of 89.2 Trillion Won... Turns to Operating Loss in Q4

Record Sales of 89.2 Trillion Won, All-Time High
Operating Profit Down 27.5%
Home Appliance and Vehicle Components Achieve 10 Consecutive Years of Growth

LG Electronics achieved record-breaking sales for the second consecutive year in 2025, surpassing 89 trillion won in revenue. This growth was driven by the home appliance and vehicle component divisions, which continued to expand despite unfavorable conditions such as tariff burdens and the electric vehicle chasm-a period of temporary stagnation in demand. However, profitability weakened due to sluggish recovery in display demand and increased marketing expenses.

According to LG Electronics on January 30, 2026, the company’s consolidated revenue for last year reached 89.2009 trillion won, up 1.7% from the previous year. The home appliance and vehicle component sectors have maintained continuous growth for ten consecutive years since 2015.

Business-to-business (B2B) revenue, including key qualitative growth areas such as vehicle components, heating, ventilation, and air conditioning (HVAC), and component solutions, increased by 3% year-on-year to 24.01 trillion won. During the same period, subscription-based revenue, which combines products and services, also rose by 29% to 2.5 trillion won.

In contrast, operating profit fell by 27.5% year-on-year to 2.4784 trillion won. Notably, the company posted a provisional operating loss of 109 billion won in the fourth quarter of last year, marking its first quarterly deficit in nine years.

LG Electronics explained, "The recovery in demand for display-based products has been delayed, while marketing expenditures have increased due to intensified competition." The company added, "In the second half of the year, we also recognized several hundred billion won in non-recurring expenses due to a company-wide voluntary retirement program aimed at improving workforce efficiency." However, it noted, "The costs associated with voluntary retirement are expected to help ease the burden of fixed costs over the medium to long term."

By business segment, the core home appliance division achieved its highest-ever sales. The Home Appliance & Air Solution (HS) division recorded 26.1259 trillion won in revenue and 1.2793 trillion won in operating profit. Excluding one-off expenses, operating profit slightly increased, demonstrating the company’s ability to respond to tariffs through production optimization, price adjustments, and cost improvements.

LG Electronics stated, "This year, we plan to continue our growth by expanding our artificial intelligence (AI) home appliance lineup and targeting emerging markets. We will also foster businesses such as built-in appliances and component solutions, while continuing our efforts to prepare for the future with AI Home and home robots."

The Home Entertainment (MS) division, which is responsible for display-based products such as TVs, posted 19.4263 trillion won in revenue and an operating loss of 750.9 billion won, turning to a deficit compared to the previous year. This was due to delayed demand recovery and intensified market competition.

This year, the company plans to strengthen its lineup with competitive products such as micro RGB not only in OLED but also in LCD. It will actively seek out demand for lifestyle products such as StandbyME and Easy TV, and continue rapid growth in the webOS advertising and content business through increased content investment and expanded partnerships.

The Vehicle component Solutions (VS) division achieved record-high revenue (11.1357 trillion won) and operating profit (559 billion won), thanks to the smooth conversion of order backlogs into sales. Although demand for finished vehicles is expected to stagnate somewhat this year due to increased macroeconomic volatility, LG Electronics plans to secure stable profitability by strengthening collaboration with automakers and improving operational efficiency. The company will also accelerate its leadership in future vehicle solutions, including software-defined vehicles (SDV) and AI-defined vehicles (AIDV).

The Business Solutions (ES) division posted 9.323 trillion won in revenue and 647.3 billion won in operating profit. Both revenue and, excluding one-off voluntary retirement costs, operating profit increased from the previous year.

LG Electronics commented, "This year, demand for high-efficiency solutions such as heat pumps using eco-friendly refrigerants is expected to grow, especially in overseas markets. We are working to secure opportunities in AI data center cooling solutions, while steadily promoting the commercialization of next-generation liquid cooling technologies and expanding partnerships for the development of immersion cooling solutions."