LG Electronics Inc. reported a decline in both revenue and operating profit for the second quarter of 2025, citing weaker global market conditions, higher tariffs due to changes in US trade policy, and increased costs, including logistics expenses.
Consolidated revenue for the quarter reached KRW 20.74 trillion, while operating profit stood at KRW 639.4 billion. Both figures represent a decrease from the same period last year.
Despite the overall downturn, three of LG’s business units, Home Appliance Solution (HS), Vehicle Solution (VS), and Eco Solution (ES), posted year-over-year increases in both revenue and operating profit. Each unit also recorded its strongest second-quarter performance to date. The VS unit, in particular, reported its highest-ever quarterly revenue and profit.
The Media Entertainment Solution (MS) Company reported a loss for the quarter, largely due to reduced TV sales and higher marketing costs. Still, its webOS platform-based advertising and content business continued to perform steadily.
To strengthen its foundation for future growth, LG is focusing on business-to-business (B2B) offerings, including vehicle components, HVAC systems, and smart factory solutions, along with subscription-based and direct-to-consumer (D2C) models.
B2B revenue rose 3% year-over-year to KRW 6.2 trillion, while subscription revenue increased 18%, reaching KRW 630 billion.
Segment highlights
The HS unit generated KRW 6.59 trillion in revenue and KRW 439.9 billion in operating profit in the second quarter. The company credited its performance to a dual-track strategy targeting both premium and mass-market consumers, and growth in its subscription business. Operational efficiencies also helped offset the impact of higher logistics costs.
Looking ahead, LG expects only gradual market recovery and will continue expanding its D2C and subscription businesses, while keeping a close watch on marketing spending.
The MS unit posted KRW 4.39 trillion in revenue and an operating loss of KRW 191.7 billion. LG attributed the loss to weaker TV demand and higher promotional costs. However, the company aims to improve performance by boosting efficiency and growing its content and advertising offerings through webOS, especially in areas like gaming and digital art. It also plans to expand in markets such as India.
The VS unit achieved record revenue of KRW 2.85 trillion and operating profit of KRW 126.2 billion. Strong vehicle sales in Europe and a shift toward high-value infotainment systems supported the result. LG said it will continue to improve efficiency and deepen ties with automakers.
The ES unit recorded KRW 2.64 trillion in revenue and KRW 250.5 billion in operating profit. Growth came from strong domestic demand for residential air conditioners and increased sales in the commercial and industrial HVAC segments.
LG said its focus on business segments with recurring revenue, high margins, and long-term growth potential remains central to its strategy.