LG Electronics Achieves Record First-Quarter Sales... Home Appliance and Vehicle Solutions Sales Surpass 10 Trillion Won for the First Time

Operating Profit Reaches 1.6 Trillion Won, Up 33% Year-on-Year
Qualitative Growth Driven by Subscription and webOS Platform
Significant Improvement in Profitability

LG Electronics set a new record for first-quarter sales and demonstrated its strength with operating profit increasing by more than 30% compared to the previous year. In particular, both the home appliance and vehicle components businesses achieved their highest-ever quarterly sales, driving the company's overall performance.

On April 29, LG Electronics announced its consolidated results for the first quarter of this year, reporting sales of 23.7272 trillion won and operating profit of 1.6737 trillion won. Sales rose by 4.3% year-on-year, setting an all-time first-quarter high, while operating profit surged by 32.9%, marking the third-highest figure in the company's history.

The strong results were driven by the premium leadership of core businesses such as home appliances and TVs, as well as the growth of the vehicle solutions division, which is a key pillar in B2B (business-to-business) operations. The combined quarterly sales of the Home Appliance & Air Solution (HS) and Vehicle Solutions (VS) divisions surpassed 10 trillion won for the first time. B2B sales reached 6.5 trillion won, expanding their share to 36% of the company's total sales. The subscription business also recorded 640 billion won in sales, up 15% year-on-year, supporting qualitative growth based on profitability.

By business division, the HS division achieved record-high quarterly sales of 6.9431 trillion won and operating profit of 569.7 billion won. Despite rising raw material prices and the impact of U.S. tariffs, the division maintained a robust operating margin of 8.2% by simultaneously targeting premium and volume segments and expanding the share of online and appliance subscription sales. For the second quarter, LG Electronics plans to sustain sales growth by strengthening its product lineup and targeting the global south. The company also aims to secure profitability through supply chain optimization and cost competitiveness, while continuing to foster future growth engines such as home robots and robot component businesses.

The Media Entertainment Solutions (MS) division posted sales of 5.1694 trillion won and operating profit of 371.8 billion won. Operating profit increased significantly year-on-year, and the division returned to profitability compared to the previous quarter. Key drivers included strong premium sales, growth in the webOS platform business, improved marketing cost efficiency, and reduced fixed costs. In the second quarter, the division aims to secure profitability by responding to demand from sports events.

The VS division recorded its highest-ever sales and operating profit, with sales of 3.0644 trillion won and operating profit of 211.6 billion won. Notably, the operating profit margin exceeded 6% for the first time since the division was established, solidifying its position as a stable cash cow. Growth was led by the premiumization of in-vehicle infotainment solutions, the expansion of applicable models, and strong sales among European automakers.

The Energy Solutions (ES) division reported sales of 2.8223 trillion won and operating profit of 248.5 billion won. Results were slightly down year-on-year due to weakened consumer sentiment amid the Middle East conflict. Moving forward, the division plans to focus on next-generation technologies, including region-specific products for North America and Europe and artificial intelligence (AI) data center (AIDC) cooling solutions.

LG Twin Towers, Yeouido, Seoul.

This content was produced with the assistance of AI translation services.