LG Electronics Inc. announced its consolidated financial results for the second quarter of 2025, posting revenue of KRW 20.74 trillion and an operating profit of KRW 639.4 billion.
Despite a year-over-year decline attributed to global market softness, tariff pressures, and rising logistics costs, LG demonstrated resilience through strong performances across its key business segments.
Strong Performance in Core Segments Drives Growth
The Home Appliance Solution (HS), Vehicle Solution (VS), and Eco Solution (ES) divisions all achieved record-breaking revenue and operating profits in Q2 2025, marking their best-ever second-quarter results.
Notably, the Vehicle Solution Company reached historic highs in both revenue and profitability, boosted by growing demand for automotive components and in-vehicle infotainment (IVI) systems.
In contrast, the Media Entertainment Solution (MS) division faced challenges with decreased TV sales and higher marketing expenses, leading to an operating loss.
However, the webOS platform’s advertising and content services continued to generate steady profits, contributing positively to LG’s overall earnings.
Strategic Focus on B2B, Subscription Services, and Direct-to-Consumer Channels
LG is intensifying its strategic shift toward business-to-business (B2B) segments—including vehicle components, smart factory solutions, and HVAC systems—alongside expanding non-hardware businesses such as subscription services and its webOS platform.
The company’s direct-to-consumer (D2C) operations, particularly through its online store LGE.COM, also play a critical role in boosting profitability and enhancing brand loyalty.
In Q2 2025, LG’s B2B revenues increased by 3% year-over-year to KRW 6.2 trillion, supported by vehicle and HVAC solutions.
Meanwhile, home appliance subscription services grew by 18% to KRW 630 billion, underscoring the success of LG’s portfolio transformation and recurring revenue model.
Detailed Q2 2025 Results and Outlook by Division
Home Appliance Solution (HS) Company
The HS division reported KRW 6.59 trillion in revenue and KRW 439.9 billion in operating profit, achieving its strongest second-quarter performance.
This was driven by a dual-track approach targeting both premium and mass markets, rapid growth in subscription services, and operational efficiencies that offset rising tariffs and freight costs.
LG plans to continue expanding its subscription and D2C offerings while managing costs to sustain profitability despite competitive pressures.
Media Entertainment Solution (MS) Company
With revenue of KRW 4.39 trillion, the MS division faced an operating loss of KRW 191.7 billion due to soft demand and increased marketing.
The division aims to improve operational efficiency and grow its presence in emerging markets such as India. The webOS platform is expected to further develop with new content in gaming and digital arts, helping stabilize future earnings.
Vehicle Solution (VS) Company
The VS division recorded a historic revenue of KRW 2.85 trillion and operating profit of KRW 126.2 billion, fueled by strong OEM sales in Europe and a strategic emphasis on premium IVI systems.
Efficiency improvements in electric vehicle components and lighting systems also contributed to this robust performance. The division will focus on deepening customer relationships and maintaining margins through continued operational excellence.
Eco Solution (ES) Company
The ES division achieved record Q2 revenue of KRW 2.64 trillion and operating profit of KRW 250.5 billion, driven by high demand for residential air conditioners and expanded commercial HVAC sales. Increased sales volumes improved operating leverage and profitability.
Going forward, LG plans to target high-efficiency product replacements and explore growth opportunities in AI data center cooling solutions, power generation systems, and liquid cooling technologies.
Conclusion: LG’s Resilient Growth Strategy for 2025 and Beyond
LG Electronics is successfully navigating the challenging global market environment by leveraging operational resilience, portfolio diversification, and strategic focus on high-growth B2B and subscription models.
With ongoing investments in innovation and efficiency, LG is well-positioned to sustain long-term qualitative growth and deliver enhanced shareholder value.
