LG releases second-quarter 2025 financial results
Both revenue and operating profit declined year-over-year, primarily due to continued global market softness, increased tariff burdens driven by changes in U.S. trade policy, and intensified competition. Rising costs, including logistics expenses, also weighed on overall profitability compared to the same period last year.
Despite these challenges, the Home Appliance Solution (HS), Vehicle Solution (VS) and Eco Solution (ES) Companies delivered strong performance, each posting year-over-year increases in both revenue and operating profit. All three Companies achieved their highest-ever second-quarter results. In particular, the VS Company recorded its best quarterly revenue and operating profit in history.
Meanwhile, the Media Entertainment Solution (MS) Company reported an operating loss, primarily due to lower TV sales and increased marketing spend. However, its webOS platform-based advertising and content business continued to generate stable profits, increasingly contributing to the Company's overall performance.
Building Stronger Foundation for Qualitative Growth
LG continues to strengthen its business fundamentals by focusing on B2B segments such as vehicle components and HVAC systems, non-hardware businesses including subscription services and the webOS platform, and direct-to-consumer (D2C) operations via its online platform, LGE.COM.
In Q2 2025, B2B revenue – including vehicle, component and smart factory solutions, as well as HVAC – rose 3 percent year-over-year to USD 4.42 billion. Revenue from the home appliance subscription business increased 18 percent, reaching USD 448.7 million.
These segments remain central to the company's ongoing portfolio transformation. The B2B business is less susceptible to demand volatility and benefits from strong entry barriers due to solution-based customer relationships. Non-hardware businesses offer recurring revenue and high margins, while the D2C channel enhances profitability and brand equity.
Q2 2025 Results & Outlook by Company
LG Home Appliance Solution (HS) Company
The HS Company posted second-quarter revenue of USD 4.69 billion and operating profit of USD 313.2 million, achieving its highest-ever second-quarter performance. Despite soft consumer demand, tariff pressures and rising freight costs, the Company maintained strong global competitiveness. Its dual-track strategy – targeting both premium and mass-market segments – continued to drive solid results. The subscription model business continued its rapid expansion. Operational efficiencies and production optimization helped offset increased costs and support profitability.
Looking ahead, market recovery is expected to remain gradual amid heightened competition. The Company will focus on expanding its subscription and D2C businesses and pursue additional cost improvements to help mitigate U.S. tariff impacts. While logistics cost pressures are projected to ease slightly compared to late 2024 and early 2025, the Company plans to carefully manage marketing expenditures to sustain or exceed last year's level of operating profit.
LG Media Entertainment Solution (MS) Company
The MS Company posted second-quarter revenue of USD 3.13 billion and an operating loss of USD 136.5 million, primarily due to softened demand leading to lower TV sales and increased marketing expenses in response.
Going forward, the Company will focus on enhancing operational efficiency across all business segments. It plans to expand its presence in Global South markets such as India, where demand remains relatively strong. Continued growth is also expected in the webOS platform business, with new content offerings in areas such as gaming and digital art.
LG Vehicle Solution (VS) Company
The VS Company generated record second-quarter revenue of USD 2.03 billion and operating profit of USD 89.9 million – the highest in its history. Performance was supported by a robust order backlog and increased OEM vehicle sales, particularly in Europe.
A strategic shift toward premium in-vehicle infotainment (IVI) systems significantly enhanced profitability, while operational efficiency improvements in electric vehicle components and lighting systems further bolstered results. Moving forward, the Company will focus on strengthening relationships with key customers and maintaining profitability through ongoing efficiency gains.
LG Eco Solution (ES) Company
The ES Company achieved second-quarter revenue of USD 1.88 billion and operating profit of USD 178.4 million, marking a record for second-quarter performance. This growth was driven by strong demand for residential air conditioners in Korea and continued expansion in the commercial and industrial HVAC segments. Higher sales volumes boosted operating leverage, leading to improved profitability.
Looking ahead to the second half of the year, the Company aims to capture replacement demand for high-efficiency products while expanding its product portfolio to support long-term growth. It also plans to explore new opportunities in emerging sectors such as AI data centers by enhancing its commercial HVAC and industrial chiller capabilities – including systems for power generation – and scaling up its liquid-cooling solutions business.
About LG Electronics, Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 75,000. LG's four Companies – Home Appliance Solution, Media Entertainment Solution, Vehicle Solution and Eco Solution – combined for global revenue of over KRW 88 trillion in 2024. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, automotive components and solutions, and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
4 hours ago
- Khaleej Times
UAE, Moldova sign MOU on mutual exemption of entry visas
The UAE and Moldova signed on Monday a memorandum of understanding (MOU) on the mutual exemption of entry visas. The step was taken during a meeting in Abu Dhabi between UAE Minister of Foreign Affairs Sheikh Abdullah bin Zayed and his Moldovan counterpart.
The National
4 hours ago
- The National
Jordan has slump in visitors to Petra during Gaza war
Jordan has had a sharp drop in visitors to its ancient city of Petra and other sites since war broke out in Gaza almost two years ago, it was revealed on Monday. Figures released by the Petra Development and Tourism Region Authority show visitors dropping from almost 1.2 million in 2023 to fewer than 460,000 last year – a decrease of about 61 per cent. "We feel the repercussions of the aggression on Gaza every day, especially for providers of tourism services," Abdul Razzaq Arabiyat, the director of the national tourism board, told TV channel Al Mamlaka. Mr Arabiyat said tourism from Europe and North America has hit a record low, dealing a devastating blow to the hotel industry and tour operators around Petra, in Jordan's south. According to figures from the Petra tourism authority carried by official media, 32 hotels have had to shut down and almost 700 people have lost their jobs. Although Jordan does not share a border with Gaza, it is among many countries across the Middle East affected by the war between Israel and Hamas. The kingdom has worked with the UAE to fly food into Gaza and sought to use its diplomatic influence to bring about a ceasefire. Petra, famous for its stunning temples hewn from rose-pink cliff faces, is a Unesco world heritage site. The Jordanian economy relies on revenues from the kingdom's tourism sector, which accounts for 14 per cent of gross domestic product. Jordan's tourism board had hoped to keep numbers steady from a pre-war figure of 5.4 million visitors a year across the country. Mr Arabiyat told The National in May 2024 that "we need to at least maintain this number this year, and we hope it will not decrease". Last August, it was revealed that Middle East plane tickets issued in a 10-day period during the height of summer were seven per cent down year on year, with Jordan and Lebanon suffering the biggest drops.
The National
6 hours ago
- The National
New four-lane tunnel opens in Dubai to ease traffic
An 800-metre tunnel with four lanes in each direction has opened in Dubai as part of a project to ease traffic flow in the city. The tunnel extends from the junction with Al Khail Road to the intersection with Sheikh Mohammed bin Zayed Road as part of the Umm Suqeim Street development project. The project is part of plans by Dubai's Roads and Transport Authority (RTA) to ease the flow of traffic and improve the road infrastructure in the emirate. 'The Umm Suqeim Street development project extends from the intersection with Al Khail Road to the intersection with Sheikh Mohamed bin Zayed Road, covering a distance of 4.6km," said Mattar Al Tayer, RTA director general, on Sunday. "The works included upgrading the intersection of Umm Suqeim Street with Al Barsha South Street, near Kings' School, where an 800-metre-long underpass with four lanes in each direction was constructed, in addition to a signalised surface-level intersection. "This development is considered one of the most important strategic projects for developing transverse east-west roads to enhance connectivity with vertical north-south roads. The completion of the project complements RTA's efforts to upgrade this corridor." The tunnel is part of plans to develop the Umm Suqeim-Al Qudra corridor, which extends from the intersection with Jumeirah Street to the junction with Emirates Road, spanning a total of 16km.
