LG Electronics Achieves Record Revenue in First Quarter
LG Electronics Reports Unprecedented First-Quarter Revenue
LG Electronics Inc. today announced its preliminary earnings results for the first quarter, revealing an impressive consolidated revenue of KRW 22.7 trillion and an operating profit of KRW 1.3 trillion.
This remarkable achievement marks the first occasion where LG's first-quarter revenue has surpassed KRW 22 trillion. The company's strategic shift towards focusing on 'qualitative growth' has proven pivotal, especially against the backdrop of a global economic slowdown.
Growth Across Diverse Sectors
In particular, LG's Eco Solution (ES) business has emerged as a main driver of growth, contributing significantly to both revenue and profitability. Additionally, various sectors, such as subscription services, webOS-based advertising, and direct-to-consumer (D2C) sales, have significantly bolstered the company's record-setting outcomes.
Operating profits have exceeded the KRW 1 trillion mark for six straight years, reflecting a consistent and stable profit structure. Increased revenues from high-margin sectors have provided a robust leveraging effect, enabling continued profitability. Key factors contributing to this success included effective resource allocation, improved normalization of raw material costs, and enhanced agility within global production operations.
Technological Advancements in Home Appliances
In the home appliance segment, LG's premium products have sustained strong leadership positions in the global arena. The built-in appliance business and essential component sales, such as motors and compressors, have made significant contributions to overall performance.
The expanding subscription business, which integrates hardware with services, is anticipating rapid growth in the years to come. LG has ambitious plans to enhance its subscription-ready product lineup and customer support services in 2025, while simultaneously accelerating its global subscription model rollout.
Innovative Solutions in Media and Entertainment
Within the media and entertainment solutions sector, LG is focusing on integrating its display businesses—encompassing TVs, IT equipment like laptops and monitors, and commercial displays. This strategy aims to cultivate synergies within its webOS-based advertising and content platform, which has typically revolved around smart TVs.
The introduction of advanced AI features in LG's 2025 TV lineup—ranging from personalized content recommendations to superior picture quality and immersive sound—has generated a very positive market response. Additionally, new innovations such as the ultra-light LG gram Pro AI laptop and the portable LG StanbyME 2 lifestyle screen have garnered significant interest. Besides, the commercial display segment has successfully secured numerous large-scale international contracts.
Advancements in Vehicle Solutions
Continuing to boost the vehicle solutions business, LG is expanding its sales of high-value products. This includes advancements in in-vehicle infotainment (IVI) systems and diversification into automotive content platforms. LG Magna e-Powertrain is enhancing its competitive edge via advanced motor and inverter technologies while simultaneously upgrading operational capabilities across global production sites, which supports sustainable growth. Furthermore, the automotive lighting division is making strides in developing next-generation technologies such as high-resolution and intelligent lighting systems.
Independent Operations and Focus on HVAC
In a significant move, LG's heating, ventilation, and air conditioning (HVAC) business has become an independent entity from the first quarter onwards. This strategic decision places more focus on the specific characteristics of customers and the order-centric HVAC business model, thereby increasing its contribution to overall profitability.
In the commercial HVAC sector, LG has secured notable overseas contracts by offering customized, localized solutions tailored to market demands. Looking forward, LG aims to bolster its HVAC operations as a cornerstone of its B2B offerings by harnessing proprietary innovations in compressors, fans, heat exchangers, and AI technologies.
Looking Ahead
In the residential market, LG seeks to uphold its leadership position through AI-enhanced innovations. The company is also actively exploring new opportunities within industrial and power-generation sectors by focusing on large-scale chiller systems.
These figures represent preliminary consolidated earnings based on K-IFRS, shared with investors ahead of LG Electronics' official earnings release, which will include detailed insights into net profits and division specifics later this month.
About LG Electronics, Inc.
LG Electronics stands as a global innovator in technology and consumer electronics, with a presence in nearly every corner of the world and a workforce exceeding 75,000. The company's four main divisions—Home Appliance Solution, Media Entertainment Solution, Vehicle Solution, and Eco Solution—collectively generated over KRW 88 trillion in global revenue in the previous year. Known for its broad spectrum of consumer and commercial products, LG has established itself with recognizable brands like LG SIGNATURE and the intelligent LG ThinQ, catering to diverse markets worldwide.
Frequently Asked Questions
What were LG Electronics' preliminary earnings for the first quarter?
LG Electronics reported a consolidated revenue of KRW 22.7 trillion and operating profit of KRW 1.3 trillion.
What factors contributed to LG's record revenue?
The focus on qualitative growth, performance in B2B sectors, and advancements in subscription services all contributed to LG's record highs.
How is LG expanding its subscription business?
LG is enhancing its product lineup for subscription readiness and improving customer care services while accelerating its global rollout.
What innovations were introduced in LG's 2025 TV lineup?
LG's 2025 TV lineup features advanced AI capabilities, improved picture quality, and personalized content recommendations.
What is the strategic objective of LG's HVAC business?
LG aims to focus on the order-based HVAC business, providing tailored solutions to enhance profitability.
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