South Korean tech giant LG Electronics (066570.KS) announced its second-quarter earnings, with both revenue and operating profit setting new records for the same period, driven by strong sales of premium home appliances and TVs, continued expansion of its automotive electronics business, and a one-time gain from U.S. tariff refunds. The company stated that despite ongoing uncertainties in the global macroeconomic environment, its product mix optimization and cost control strategies have begun to show significant results.
According to an official press release issued by LG Electronics on the 30th, consolidated revenue for the second quarter reached ₩23.83 trillion (approximately $16.6 billion), up 14.9% year-over-year. Operating profit surged to ₩1.58 trillion (approximately $1.1 billion), a 147% jump from the same period last year. The growth rate far outpaced revenue growth, highlighting a strong leap in profitability.
However, market views on the final net profit figure were somewhat divided. Some South Korean media reported net profit at ₩781.3 billion, while other outlets noted that after accounting for non-operating items and tax expenses, net profit attributable to the parent company was ₩668 billion, falling short of the market estimate of ₩739.81 billion. Nevertheless, LG Electronics’ cumulative operating profit for the first half of this year has already reached ₩3.25 trillion, surpassing its full-year 2025 level and laying a solid foundation for its annual performance.
Looking at the performance of each business division, LG Electronics’ growth momentum was quite balanced, with all four core businesses delivering impressive results:
Business DivisionRevenueOperating ProfitKey Growth DriversHome Appliance & Air Solution (HS)₩7.08 trillion₩685.9 billionHome appliance revenue surpassed ₩7 trillion in a single quarter for the first timeMedia Entertainment Solution (MS)₩5.11 trillion₩219.4 billionGrowth in OLED, QNED TVs, and webOS platformVehicle Solution (VS)₩3.03 trillion₩191.2 billionBoth revenue and operating profit hit record highs for the periodEco Solution (ES)₩2.73 trillion₩235.8 billionExpansion of overseas air conditioner sales
Note: Table data sourced from LG Electronics’ official consolidated financial statements
The home appliance division was arguably the quarter’s biggest highlight, with single-quarter revenue crossing the ₩7 trillion threshold for the first time and an operating profit margin reaching 9.7%. Industry analysts attribute this to LG Electronics’ dual-track strategy of targeting both the premium and mass markets, coupled with steady growth in subscription-based services and continuous optimization of raw material costs and supply chains. Additionally, the division recognized a refund of tariffs previously paid on exports to the U.S., providing an extra boost to profits.
The TV division also performed well, benefiting from demand driven by major global sporting events. Strong sales of high-end models such as OLED and QNED TVs, along with increased content and advertising revenue from emerging markets and the webOS smart TV platform, contributed to a more robust profit structure for the division.
The automotive electronics business continued its strong expansion momentum from recent years. As global automakers continue to incorporate more advanced electronic systems, demand for LG Electronics’ in-vehicle infotainment, electric vehicle powertrain, and vehicle lighting solutions remains robust, driving the Vehicle Solution division’s quarterly revenue and operating profit to both set new records for the same period.
Beyond its existing businesses, LG Electronics is actively laying the groundwork for future growth engines. The company is accelerating the advancement of new businesses such as robotic actuators and artificial intelligence data center (AIDC) cooling solutions, leveraging its leadership in advanced thermal management technology to seize infrastructure opportunities in the AI era.
Notably, LG Electronics’ B2B business also continued to grow. Second-quarter B2B revenue increased 5% year-over-year to ₩6.5 trillion, accounting for approximately 36% of total revenue. Subscription-based services, including product leasing and maintenance, also saw revenue grow 5% to ₩660 billion, indicating that LG Electronics is gradually transforming from a traditional hardware manufacturer into a technology company providing integrated solutions.
Looking ahead to the second half of the year, LG Electronics stated it will maintain the competitiveness of its mainstay businesses while accelerating the expansion of new ventures. Market analysts are focused on whether core operations such as home appliances, automotive electronics, and data center cooling systems can continue to support such strong profit growth momentum after stripping out one-time factors like the tariff refund.
As the global consumer electronics market gradually recovers and demand for electric vehicle and AI server-related components continues to rise, LG Electronics’ diversified business portfolio is building a unique competitive advantage that sets it apart from traditional home appliance peers.