Solid appliance sales, B2B growth drive earnings above expectations
LG Electronics posted record first-quarter revenue and a sharp rebound in operating profit, beating market expectations on the back of solid performance across its core businesses.
The company said Tuesday its consolidated revenue for the January-March period reached 23.73 trillion won ($15.7 billion), up 4.4 percent from a year earlier, its highest-ever first-quarter sales. Operating profit totaled 1.67 trillion won, rising 32.9 percent on-year and well above market expectations.
According to market estimates compiled by FnGuide, the consensus forecast stood at 23.32 trillion won in revenue and 1.38 trillion won in operating profit.
LG returned to profit after posting an its first quaterly operating loss since 2016 in the fourth quarter of 2025, at 109.4 billion won.
The performance was driven by steady growth in key businesses such as home appliances, along with continued expansion in business-to-business areas including automotive components. Profitability improved as the company responded early to US tariff policies, optimized production bases and strengthened its cost structure.
A higher share of margin-rich businesses — including platform services, subscription models and online sales — also supported earnings.
The home appliance solution division sustained growth by targeting both premium and volume segments, while expanding online sales and appliance subscription services. The company said it would continue efforts to improve margins through cost structure innovation amid persistent pressures from raw materials prices.
LG is also maintaining investments in growth areas such as home robotics and robot components, including actuators.
The media entertainment division returned to profit from the previous quarter and improved margins from a year earlier through operational efficiency gains. Its webOS platform business continued to grow rapidly, contributing to a shift in the overall business structure.
This year, LG plans to strengthen its lineup with OLED TVs, premium LCD models including micro RGB, and lifestyle TVs.
The vehicle solution division posted stable revenue growth backed by a solid order backlog, while profitability improved on cost optimization efforts and favorable exchange rate conditions.
The eco solution division saw revenue and operating profit decline on-year due to external uncertainties, including geopolitical risks in the Middle East.
LG said it plans to expand its presence in AI data center cooling solutions based on next-generation technologies such as liquid cooling, alongside energy transition businesses including heat pumps.
The company added it would continue to respond flexibly to geopolitical uncertainties — including rising raw material costs and logistics expenses — to minimize their impact on operations.
By Jie Ye-eun (yeeun@heraldcorp.com)
