LG Electronics Q3 Operating Profit and Sales Down Year-on-Year... Home Appliances and Automotive Electronics Outperform (Comprehensive)

Preliminary Third-Quarter Results Announced
Profitability Weighed Down by Tariffs and Voluntary Early Retirements
Automotive Electronics Division Expected to Achieve Record-High Profitability
Focus on ‘Qualitative Growth’ in B2B and Other Key Are

LG Electronics announced its preliminary results for the third quarter of this year, reporting declines in both revenue and operating profit compared to the same period last year, due to a challenging external environment, including the increased burden of U.S. tariffs. However, its core businesses-home appliances and the B2B vehicle component division-performed strongly, surpassing market expectations.

LG Twin Towers in Yeouido, Seoul. Photo by Kang Jinhyung aymsdream@

According to a disclosure on the 13th, LG Electronics’ consolidated operating profit for the third quarter of 2025 was provisionally estimated at 688.9 billion won, down 8.4% from the same period last year. Revenue stood at 21.8751 trillion won, a decrease of 1.4% year-on-year. Both figures exceeded market forecasts. The revenue was the second highest for a third quarter in the company’s history, and operating profit surpassed recent market estimates by more than 10%.

LG Electronics evaluated these preliminary results by stating, "The home appliance business maintained strong competitiveness and market position, while the vehicle component division is expected to have achieved record-high profitability. The solid performance across both core and future businesses helped alleviate market concerns."

However, the company analyzed that non-recurring factors, such as the tariff burden from changes in the business environment and voluntary retirement programs implemented as part of workforce renewal, impacted overall profitability.

Specifically, the home appliance division maintained its dominance in the premium market and delivered stable results in the volume zone (the segment with the largest consumer demand), despite tariff burdens on U.S. exports and delayed global demand recovery. The company attributed this to ongoing efforts to optimize production sites and resource allocation to minimize tariff impacts, as well as steady growth in subscription services that combine products and services.

In the media and entertainment business, one-off costs were recognized due to voluntary retirements as part of workforce renewal, while marketing expenses increased amid intensified competition in TV sales.

Looking ahead, LG Electronics announced plans to further strengthen the competitiveness of its webOS platform and focus on diversifying its revenue streams. The company will also accelerate its strategy to target the "Global South," where TV demand remains relatively robust compared to other regions.

The vehicle component division is expected to have achieved record-high profitability in the third quarter of 2025. The expansion of premium product sales in the automotive infotainment business significantly contributed to profitability. LG Electronics stated that the lamp and electric vehicle component businesses are also expected to achieve stable growth in the future, backed by a high order backlog.

The heating, ventilation, and air conditioning (HVAC) business is securing future opportunities by focusing on commercial HVAC systems and industrial/power chillers, while also preparing to commercialize liquid cooling solutions for data centers, which are considered next-generation technology.

LG Electronics is maintaining its business fundamentals by focusing on "qualitative growth" areas such as B2B divisions like vehicle components and HVAC, as well as non-hardware and online businesses including appliance subscriptions and webOS. With the recent listing of its Indian subsidiary, the company is planning large-scale fundraising and intends to accelerate business restructuring and future growth initiatives.

At the end of this month, LG Electronics plans to announce its finalized third-quarter results, including consolidated net profit and the operating performance of each business division.