LG Q3 Operating Profit Hits KRW 688.9B, Tops Forecast

According to recent reports, LG Electronics' third-quarter results outperformed market expectations, driven by solid growth in its home appliances and automotive components divisions, despite continued weakness in its TV business.

On October 13, LG Electronics announced preliminary consolidated revenue of KRW 21.8751 trillion and an operating profit of KRW 688.9 billion for Q3 2025. While these figures represent a 1.4% decline in revenue and an 8.4% drop in profit compared to last year, both exceeded analyst forecasts — with revenue beating expectations of KRW 21.23 trillion and profit surpassing the KRW 600.5 billion estimate by more than 10%. This marks the second-highest third-quarter revenue in the company's history.

LG Electronics explained that factors such as tariff burdens from shifting trade environments and voluntary retirement programs for employees aged 50 and above impacted overall profitability.

In the home appliance segment, the company maintained a strong foothold in the premium market thanks to its industry-leading product competitiveness, even as U.S. exports remained affected by tariffs and global demand recovery was sluggish. Mid-range product performance also remained stable.

Meanwhile, LG's automotive component business achieved record-high profitability. Analysts estimate the division's Q3 revenue reached around KRW 2 trillion, with an operating profit of roughly KRW 110 billion. Growth was fueled by robust sales of high-end infotainment systems and efficiency gains in lighting and EV powertrain components, as the company continues to diversify from hardware products toward in-vehicle content platforms.

In the B2B sector, the HVAC (Heating, Ventilation, and Air Conditioning) business showed strong momentum. LG has been expanding its supply of AI-driven cooling solutions for data centers across North America, Latin America, the Middle East, and Asia, and is now preparing to commercialize next-generation liquid-cooling systems.

However, the TV and media solutions (MS) division is expected to remain in the red due to fierce competition and higher marketing costs, along with one-time expenses related to workforce restructuring.

Looking ahead, LG plans to leverage the upcoming IPO of its Indian subsidiary to accelerate business restructuring and fuel future growth. The LG Electronics India unit is set to debut on October 14, potentially raising up to KRW 1.8 trillion in new capital.