Overview of LG’s Financial Performance
LG Electronics Inc. announced on Monday that it achieved consolidated revenues of approximately $15,790 million and an operating income of around $497 million for the third quarter of 2025.
Key Divisional Performances
Despite external challenges such as US tariffs and the slowdown in the electric vehicle (EV) market, LG’s Home Appliance Solution (HS) and Vehicle Solution (VS) divisions delivered strong results.
Business Portfolio Transformation
“These results reflect the ongoing transformation of LG’s business portfolio and its commitment to qualitative growth, encompassing B2B solutions like vehicle and HVAC systems, expansion of non-hardware businesses such as subscriptions and webOS, as well as innovative direct-to-consumer sales models,” the company stated.
B2B and Subscription Services
- LG’s B2B revenues grew by 2% year-over-year, reaching approximately $4,260 million.
- Subscription service revenues for home appliances amounted to around $505 million, marking a 31% increase from the previous year.
Home Appliance Division Performance
LG HS reported revenues of $4,750 million and an operating income of $264 million.
- Growth was driven by a successful dual-focus strategy targeting both premium and mass segments, along with continued expansion of subscription and online commerce businesses.
- Production site optimization and operational efficiency improvements helped offset much of the impact from US tariffs, leading to higher annual profitability.
Multimedia Division Performance
LG’s Multimedia division recorded revenues of $3,360 million but reported an operating loss of $218 million in Q3.
- Profitability was affected by increased marketing investments to counter intensified competition and extraordinary expenses related to voluntary retirements.
The company aims to improve operational efficiency and profitability in its television business while expanding the webOS platform through advertising advances and content diversification.
Additionally, LG plans to strengthen its presence in emerging South Global markets with relatively stable demand.
Vehicle Solutions Division Performance
The Vehicle Solutions division reported revenues of $1,910 million and an operating income of $108 million.
- Revenues reached a historical high for a third quarter, while operating income achieved the highest trimestral level since the company’s establishment.
- Operating margin surpassed 5% for the first time.
Although short-term challenges may arise from changes in US EV subsidy policies, LG aims to maintain stable profitability through optimized product mix, improved cost structure, and increased efficiency initiatives.
LG ES Performance
LG ES reported revenues of $1,570 million and an operating income of $96 million.
- Revenues increased slightly compared to the previous year, backed by higher domestic sales and continued growth in subscription and online businesses.
- Operating income decreased moderately due to increased investments.
LG plans to reinforce its growth momentum through region-specific product launches and explore new opportunities in commercial HVAC systems, industrial refrigeration, and energy generation.
The company recently secured several contracts for AI-powered data center cooling solutions in North America, Latin America, Middle East, and Asia, demonstrating tangible progress.
Key Questions and Answers
- Q: What were LG’s consolidated revenues and operating income for Q3 2025?
A: LG reported approximately $15,790 million in revenues and around $497 million in operating income for Q3 2025.
- Q: How did LG’s HS and VS divisions perform despite external challenges?
A: Despite facing challenges such as US tariffs and a slowdown in the EV market, LG’s HS and VS divisions delivered strong results.
- Q: What strategies contributed to LG’s qualitative growth?
A: LG focused on B2B solutions, non-hardware businesses like subscriptions and webOS, and innovative direct-to-consumer sales models.
- Q: How did LG’s B2B and subscription services perform in Q3 2025?
A: LG’s B2B revenues grew by 2% year-over-year, while subscription service revenues for home appliances increased by 31%.
- Q: What factors affected the Multimedia division’s performance in Q3 2025?
A: Increased marketing investments to counter intensified competition and extraordinary expenses related to voluntary retirements affected the Multimedia division’s profitability.
- Q: How did the Vehicle Solutions division perform in Q3 2025?
A: The Vehicle Solutions division reported revenues of $1,910 million and an operating income of $108 million, achieving a historical high for a third quarter and the highest trimestral operating margin since establishment.
- Q: What are LG’s plans for growth in emerging South Global markets?
A: LG plans to strengthen its presence in emerging South Global markets with relatively stable demand through region-specific product launches and exploring new opportunities in commercial HVAC systems, industrial refrigeration, and energy generation.
