LG RELEASES PRELIMINARY EARNINGS FOR FIRST-QUARTER 2025
Rhea-AI Summary
LG Electronics (LGEJY) has reported preliminary Q1 2025 earnings with record-breaking consolidated revenue of KRW 22.7 trillion and operating profit of KRW 1.3 trillion. This marks the first time LG's Q1 revenue exceeded KRW 22 trillion, with operating profit surpassing KRW 1 trillion for the sixth consecutive year.
Growth was primarily driven by the Eco Solution (ES) business in B2B sectors, alongside strong performance in subscription services, webOS-based advertising, and D2C sales. The home appliance division maintained global market leadership in premium products, while the vehicle solution business expanded in high value-added products, particularly in-vehicle infotainment systems.
The company's HVAC business began operating independently in Q1, securing major overseas contracts and focusing on commercial and residential markets with AI-powered innovations. Profitability was supported by efficient resource allocation, normalized raw material and logistics costs, and enhanced global production operations.
Positive
- Record Q1 revenue of KRW 22.7 trillion
- Operating profit of KRW 1.3 trillion, marking 6th consecutive year above KRW 1 trillion
- Strong performance in high-margin B2B sectors
- Expanding subscription business combining hardware and services
- Secured major international contracts in commercial display and HVAC segments
Negative
- Facing ongoing macroeconomic challenges including global economic slowdown
The Company Achieves Record-High First-Quarter Revenue
Surpassing
This marks the first time LG's first-quarter revenue has exceeded
Especially in B2B sectors, the Eco Solution (ES) business has been the primary driver of growth in both revenue and profitability. Other areas—such as subscription services, webOS-based advertising and content, and direct-to-consumer (D2C) sales—also contributed to the company's record-breaking results.
Operating profit exceeded
In the home appliance solution business, LG's premium products maintained strong leadership in the global market. The built-in appliance business – a B2B segment – alongside key component sales such as motors and compressors, also contributed meaningfully to the performance.
The company's subscription business, which combines hardware and services, is rapidly expanding. In 2025, LG plans to further strengthen its subscription-ready product lineup and customer care services, while also accelerating the global rollout of its subscription model.
In the media and entertainment solution business, from this year, LG is integrating its display-based businesses – including TVs, IT (laptops, monitors) and ID (commercial displays) – to generate synergy in its webOS-based advertising and content platform, traditionally centered around smart TVs.
LG's 2025 TV lineup introduced enhanced AI features such as personalized content recommendations, superior picture quality and immersive sound. New products like the ultra-light LG gram Pro AI laptop and the portable LG StanbyME 2 lifestyle screen received positive responses from global markets. The commercial display segment also secured several large-scale international contracts.
The vehicle solution business, continues to expand sales of high value-added products, especially in in-vehicle infotainment (IVI) systems, while diversifying into automotive content platforms. LG Magna e-Powertrain is strengthening its competitiveness through advanced motor and inverter technologies and is enhancing operational capabilities at global production sites to support long-term growth. Meanwhile, the automotive lighting business is accelerating development of next-generation technologies, such as high-resolution and intelligent lighting systems, while improving overall efficiency.
The heating, ventilation and air conditioning (HVAC) business began operating as an independent Company in the first quarter. By focusing business capabilities on the essence of the order-based HVAC business and the characteristics of customers, the company is increasing its contribution to profitability.
In the commercial HVAC space, LG secured major overseas contracts in markets such as
In the residential market, LG plans to maintain its leadership with AI-powered innovations. Additionally, in industrial and power-generation sectors, the company is actively pursuing new opportunities with large-scale chiller systems.
These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics' final earnings results, including net profit. Details regarding each division will be announced officially later this month.
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
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SOURCE LG Electronics
FAQ
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