LG Electronics posts record second-quarter profit rise

LG Electronics reported second-quarter revenue of KRW 23.83 trillion and operating profit of KRW 1.58 trillion, both the highest second-quarter figures in its history.

Revenue rose 14.9 per cent from a year earlier and operating profit jumped 147 per cent, helped by stronger sales of higher-margin products, tighter cost control and a one-off gain from tariff refunds on duties previously paid on exports to the United States.

Growth across several business units supported the results, with home appliances, televisions, vehicle components and air conditioning all contributing. Business-to-business revenue reached KRW 6.50 trillion, up 5 per cent year on year and equivalent to 36 per cent of total company revenue, excluding LG Innotek.

Its subscription business, which combines products and services, generated KRW 660 billion in quarterly revenue, also up 5 per cent from a year earlier. LG linked that performance to continued international expansion and said newer business areas, including robotics and cooling systems for AI data centres, were gaining traction.

Home appliances

LG's Home Appliance Solution division reported revenue of KRW 7.08 trillion and operating profit of KRW 686 billion. Quarterly revenue at the unit exceeded KRW 7 trillion for the first time, while operating margin approached 10 per cent for the second consecutive quarter.

Performance reflected demand in both premium and mass-market segments, along with supply chain changes, cost measures and the effect of US tariff refunds. The subscription model also helped stabilise earnings by generating service revenue after the initial sale.

Media business

In media and entertainment, revenue reached KRW 5.11 trillion and operating profit totalled KRW 219 billion. The improvement was driven by steady sales of premium televisions, including OLED and QNED models, growth across Global South markets and continued expansion of the webOS platform business.

The quarter also benefited from demand tied to major sporting events, helping support broader sales momentum.

Vehicle growth

The Vehicle Solution division posted revenue of KRW 3.03 trillion and operating profit of KRW 191 billion, both record second-quarter figures for the business. Revenue topped KRW 3 trillion for a second straight quarter and operating margin exceeded 6 per cent for a second consecutive quarter.

The unit continued to benefit from a resilient order backlog, underscoring the growing role of automotive components in LG's earnings mix. The business has become a significant contributor to group growth as carmakers add more digital displays, infotainment systems and electronic parts to vehicles.

Cooling and air

The Eco Solution division recorded revenue of KRW 2.73 trillion and operating profit of KRW 236 billion. Revenue rose on stronger overseas air conditioner sales, while operating margin reached 8.6 per cent.

LG continued to invest in cooling technology for AI data centres, which it has identified as a growth market within heating, ventilation and air conditioning. It highlighted its in-house Coolant Distribution Unit as part of that effort.

The latest figures suggest LG is generating more earnings from businesses that are less exposed to swings in consumer demand alone. Home appliances remain its largest unit, but the company is also relying on recurring service income, business-to-business sales and automotive contracts to broaden its revenue base.

Macroeconomic and geopolitical uncertainty persisted during the quarter, but LG said its core businesses remained resilient. Emergency management measures and broader cost-efficiency efforts were also implemented across global operations.

For the current period, LG expects a short-term slowdown in demand in some areas, particularly home appliances, but plans to focus on Global South markets where demand has held up relatively better. It also plans to begin full-scale operations of its robot actuator business.

Across the group, the quarter marked a sharp rebound in profitability and a further shift towards businesses designed to provide steadier returns than traditional consumer electronics alone.