LG posts record annual revenue despite US tariffs
January 30, 2026
South Korea based tech giant LG Electronics has announced its financial results for the full year and fourth quarter of 2025, reporting consolidated revenue of KRW 89.2 trillion and operating profit of KRW 2.48 trillion.
LG recorded its highest annual revenue for the second consecutive year. Despite US tariff-related cost pressures, Home Appliance Solutions delivered sustained growth, while Vehicle Solutions maintained solid performance amid a slowdown in electric vehicle demand – both contributing meaningfully to the company’s record revenue. As a result, the two divisions have now posted growth for ten consecutive years since 2015.
Operating profit declined year-on-year. Marketing expenditures increased for display-based products amid delayed demand recovery and intensifying competition. In addition, several hundred billion KRW in one-off costs related to organisational optimisation were recognized in the second half of the year, primarily associated with company-wide voluntary retirement programs aimed at improving workforce efficiency. These measures are expected to contribute to a more flexible cost structure over the mid- to long term, noted LG.
LG continued to deliver progress across its key qualitative growth areas, centered on higher-value and more resilient business models. These include B2B segments such as vehicle solutions, HVAC and component solutions; non-hardware businesses including the webOS platform and maintenance services; and D2C channels encompassing subscription-based models and online sales. B2B revenue increased 3 percent year-on-year to KRW 24.1 trillion. Combined operating profit from VS and ES – LG’s two core B2B pillars – exceeded KRW 1 trillion for the first time. Revenue from subscription-based business models rose 29 per cent year-on-year, approaching KRW 2.5 trillion.
2025 Results & Outlook by Company
The LG Home Appliance Solution (HS) Company
HS reported revenue of KRW 26.13 trillion and operating profit of KRW 1.28 trillion. Revenue reached an all-time high, while operating profit increased slightly when excluding one-off costs. Through production footprint optimisation, pricing adjustments and cost improvements, HS demonstrated resilience in responding to US tariff-related pressures.
In 2026, HS plans to sustain growth by expanding its AI-powered appliance lineup and strengthening its presence in emerging markets. The Company will also continue developing built-in appliances, component solutions, AI Home platforms and home robotics as part of its evolving portfolio strategy.
The LG Media Entertainment Solution (MS) Company
MS posted revenue of KRW 19.43 trillion and an operating loss of KRW 750.9 billion, reflecting a year-on-year decline. Performance was affected by delayed demand recovery and intensified competition in the global display market.
In 2026, MS plans to strengthen its product lineup across both OLED and LCD segments, including offerings incorporating Micro RGB technology. The Company will also continue expanding demand for lifestyle-oriented products such as StanbyME and Easy TV. Meanwhile, the webOS-based advertising and content business is expected to maintain solid growth through continued content investment and expanded partnerships.
The LG Vehicle Solution (VS) Company
VS recorded revenue of KRW 11.14 trillion and operating profit of KRW 559 billion, achieving record highs in both metrics. Performance was supported by strong conversion of order backlog.
While global automotive demand is expected to face near-term uncertainty amid heightened macroeconomic volatility, VS plans to reinforce collaboration with OEM partners and further improve operational efficiency to support stable profitability. The company will also continue strengthening capabilities in future mobility solutions, including software-defined vehicles and AI-defined vehicles.
The LG Eco Solution (ES) Company
ES reported revenue of KRW 9.32 trillion and operating profit of KRW 647.3 billion. Revenue increased year-on-year, and operating profit rose slightly when excluding one-off costs. In 2026, demand for high-efficiency solutions is expected to expand, particularly in overseas markets. ES will continue pursuing opportunities in AI data centre cooling, advancing commercialisation of next-generation liquid cooling technologies and expanding partnerships for the development of immersion cooling solutions.
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