LG ANNOUNCES FIRST-QUARTER 2025 FINANCIAL RESULTS

Rhea-AI Summary

LG Electronics (LGEJY) reported record-breaking Q1 2025 financial results with consolidated revenue of KRW 22.74 trillion and operating profit of KRW 1.26 trillion. This marks the sixth consecutive year of Q1 operating profit exceeding KRW 1 trillion.

The company's success was driven by strong performance across key segments:

• Home Appliance Solution: Revenue up 9.3% to KRW 6.70 trillion, operating profit increased 9.9% to KRW 644.6 billion
• Vehicle Solution: Record revenue of KRW 2.84 trillion with KRW 125.1 billion operating profit
• Eco Solution: Revenue grew 18.0% to KRW 3.05 trillion, operating profit up 21.2% to KRW 406.7 billion
• Media Entertainment: Revenue at KRW 4.95 trillion with KRW 4.9 billion operating profit

Positive

• Record-breaking Q1 revenue of KRW 22.74 trillion
• Home Appliance revenue increased 9.3% YoY with 9.9% profit growth
• Vehicle Solution achieved highest-ever quarterly revenue and profit with KRW 100 trillion order backlog
• Eco Solution revenue grew 18.0% YoY with strong 13.3% operating margin
• B2B and non-hardware segments showing strong growth momentum

Negative

• Media Entertainment profitability impacted by rising LCD panel prices and higher marketing costs
• TV demand remains soft in the Media Entertainment segment
• Company anticipates increased uncertainty due to shifting global trade policies
• Rising market competition expected in Q2 2025

Company Achieves Record-Breaking First-Quarter Revenue
Driven by Balanced Growth in Home Appliance and B2B Sectors

SEOUL, South Korea, April 24, 2025 /PRNewswire/ -- LG Electronics Inc. (LG) today announced consolidated revenue of KRW 22.74 trillion and 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 in which operating profit surpassed KRW 1 trillion during the first quarter. Strong performance was driven by qualitative growth across key business areas, especially in B2B, non-hardware segments (such as subscriptions and webOS platform) and direct-to-consumer (D2C) sales.

Vehicle solutions and heating, ventilation and air conditioning (HVAC) – both critical to LG's B2B strategy and future growth – delivered record-breaking quarterly revenue and operating profit. Combined operating profit from the Vehicle Solution Company and Eco Solution Company increased 37.2 percent year-over-year, with revenue climbing 12.3 percent.

The Home Appliance Solution Company, LG's flagship business and primary profit generator, also recorded its highest-ever quarterly revenue while maintaining global market leadership. The business is rapidly transforming through innovative models such as subscription services and D2C sales. Meanwhile, the media and entertainment segment demonstrated solid performance, led by continued growth in LG's webOS-based advertising and content platform.

The LG 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 percent, setting a new record, and operating profit grew by 9.9 percent. The Company continues to maintain its market leadership while accelerating the growth of its subscription and D2C sales.

Looking to the second quarter, the Company anticipates increased uncertainty due to shifting global trade policies and increasing market competition. To address these challenges, the Company will expand its portfolio of new and volume-zone products, while deepening its focus on subscription and online businesses. Additional priorities include focusing on opportunities in B2B such as built-in appliances and external sales of key components like motors and compressors. Profitability efforts will center on enhancing cost competitiveness through optimizing operational efficiency.

The LG Media Entertainment Solution Company posted first-quarter revenue of KRW 4.95 trillion and operating profit of KRW 4.9 billion. While TV demand remained soft, growth in webOS-based advertising and content services made a greater contribution to performance. Revenue remained in line with the previous year, though profitability was impacted by rising LCD panel prices and higher marketing spend.

In the second quarter, the Company will seek to create synergies across its display-focused businesses, including TVs, commercial displays, and IT products such as laptops and monitors. While the market recovers slowly, the Company will emphasize profitability, particularly through premium products. The expanding webOS-based platform will aim to increase geographic reach and product base while advancing strategic partnerships with content providers to maintain its growth trajectory.

The LG Vehicle Solution Company recorded its highest-ever quarterly revenue and operating profit, with revenue of KRW 2.84 trillion and operating profit of KRW 125.1 billion. Growth continues to be powered by a robust order backlog totaling KRW 100 trillion. Notably, profitability improved in the in-vehicle infotainment business, where premium product share is steadily increasing. In the second quarter, the Company aims to sustain revenue growth and solidify a stable profit structure by expanding high-value product sales, optimizing operations in the EV component business, and enhancing resource efficiency.

The LG Eco Solution Company also achieved record-high quarterly revenue and operating profit. First-quarter revenue reached KRW 3.05 trillion, with operating profit of KRW 406.7 billion, resulting in a strong operating margin of 13.3 percent. Year-over-year, revenue rose 18.0 percent and operating profit grew 21.2 percent. Since the beginning of 2025, LG has operated its HVAC business as an independent division, with noticeable performance gains driven by efficient resource allocation and a B2B-focused organizational structure.

Alongside the Vehicle Solution Company, the Eco Solution Company serves as a core engine of LG's B2B growth. In the second quarter, the Company will seek 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.

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SOURCE LG Electronics

FAQ

What were LG Electronics (LGEJY) Q1 2025 revenue and profit figures?

LG reported Q1 2025 consolidated revenue of KRW 22.74 trillion and operating profit of KRW 1.26 trillion, achieving record-breaking first-quarter revenue.

How did LGEJY's Home Appliance division perform in Q1 2025?

The Home Appliance division posted revenue of KRW 6.70 trillion (up 9.3%) and operating profit of KRW 644.6 billion (up 9.9%), achieving its highest-ever quarterly revenue.

What is the current order backlog for LGEJY's Vehicle Solution Company?

The Vehicle Solution Company has a robust order backlog totaling KRW 100 trillion, contributing to its record-breaking quarterly performance.

How much did LGEJY's Eco Solution Company revenue grow in Q1 2025?

The Eco Solution Company's revenue grew 18.0% year-over-year to KRW 3.05 trillion, with operating profit increasing 21.2% to KRW 406.7 billion.

What challenges does LGEJY face in Q2 2025?

LG anticipates increased uncertainty due to shifting global trade policies and rising market competition in Q2 2025.