LG Electronics Inc. (LG) has released its preliminary earnings for the first quarter of 2025, announcing a consolidated revenue of KRW 22.7 trillion and an operating profit of KRW 1.3 trillion. This marks the first time in its history that LG’s first-quarter revenue has surpassed KRW 22 trillion.
Why it Matters: Despite global economic challenges, LG’s ability to grow through strategic focus on qualitative growth businesses played a pivotal role in this milestone. The company’s performance underscores its resilience and adaptability during uncertain times, particularly in high-margin and emerging sectors.
LG’s impressive results were significantly driven by the B2B Eco Solution (ES) business, which led growth in both revenue and profitability. Additionally, other key areas, such as subscription services, webOS-based advertising, and direct-to-consumer (D2C) sales, helped secure LG’s record-breaking earnings.
Operating profit exceeded KRW 1 trillion for the sixth consecutive year, reinforcing LG’s stable profit structure. The increase in high-margin revenue resulted in a strong operating leverage effect, supporting sustained profitability. Other contributing factors included better resource allocation, stabilization of raw material and logistics costs, and enhanced operational flexibility in global production.
The home appliance business also contributed significantly, with LG’s premium products maintaining leadership in the global market. Furthermore, the built-in appliance and key component sales, including motors and compressors, played an important role in the company’s growth.
In the subscription business, which integrates both hardware and services, LG is quickly expanding its presence. In 2025, the company aims to strengthen its product lineup and customer service offerings, while scaling its subscription model globally.
The media and entertainment segment is seeing increased synergy as LG integrates its display businesses, such as TVs, laptops, and commercial displays, to bolster its webOS-based advertising and content platform.
The company’s 2025 TV lineup introduces enhanced AI features like personalized content recommendations and superior picture quality, alongside innovative products like the ultra-light LG gram Pro AI laptop and the portable LG StanbyME 2 lifestyle screen. LG’s commercial display division also secured large-scale international contracts.
In the vehicle solutions sector, LG continues to strengthen its high-value product offerings, especially in in-vehicle infotainment (IVI) systems, and expand into automotive content platforms. LG Magna e-Powertrain is enhancing its competitiveness through advanced motor and inverter technologies, while the automotive lighting business is developing next-generation lighting systems.
LG’s heating, ventilation, and air conditioning (HVAC) business is now operating as an independent company, focusing on tailored solutions for commercial and residential markets. In the commercial HVAC space, LG has secured major contracts in markets like Singapore. Moving forward, HVAC is set to become a core part of LG’s B2B portfolio, with a focus on proprietary technologies in compressors, fans, heat exchangers, and AI engines.
Official earnings details, including net profit, and information regarding LG’s divisions will be disclosed later this month.
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