LG Posts Mixed Q2 2025 Results, Focuses on Portfolio Diversification for Growth

LG Electronics reported consolidated revenue of KRW 20.74 trillion and operating profit of KRW 639.4 billion for the second quarter of 2025, reflecting a decline from last year due to global market softness, higher U.S. tariffs, and escalating logistics costs. Despite overall pressure, the company’s focus on operational resilience and strategic portfolio shifts yielded historic gains in key business units.

The Vehicle Solution (VS), Home Appliance Solution (HS), and Eco Solution (ES) Companies delivered record Q2 performances. The VS Company led the way, achieving its highest-ever revenue and operating profit, bolstered by strong demand in Europe and a strategic pivot toward premium infotainment systems. The ES Company also hit a new milestone, driven by demand for residential and commercial HVAC systems, especially in Korea.

Meanwhile, the HS Company weathered tariff and freight cost challenges with its dual-market strategy, generating KRW 6.59 trillion in revenue and KRW 439.9 billion in profit. Subscription services and cost controls helped cushion profitability. Despite weaker global demand, operational efficiencies sustained performance.

However, not all segments thrived. The Media Entertainment Solution (MS) Company recorded an operating loss of KRW 191.7 billion due to subdued TV sales and increased marketing spend. Yet, its webOS platform business remained profitable, showing promise for future monetization through content like gaming and digital art.

LG’s broader business transformation is evident in its B2B and non-hardware focus. Q2 B2B revenue rose 3% to KRW 6.2 trillion, while the home appliance subscription business surged 18%, reaching KRW 630 billion. These segments offer resilience through recurring revenue and stronger customer lock-in.

Looking ahead, LG aims to expand its direct-to-consumer (D2C) channels, strengthen its webOS ecosystem, and drive growth in emerging sectors such as AI data center cooling. The company expects logistics costs to stabilize and will manage spending carefully to maintain profitability in a volatile market landscape.

Despite near-term challenges, LG is positioning itself for long-term, qualitative growth by realigning its portfolio and optimizing operations across resilient, high-margin sectors.