LG Electronics said Friday it posted record sales for the second consecutive year in 2025, but its operating profit declined amid intensifying competition and one-off restructuring costs.
In a regulatory filing, the company reported a consolidated revenue of 89.2 trillion won ($66 billion) in 2025, up 1.7 percent from a year earlier. The rise was backed by growth in home appliances and automotive solutions, offsetting tariff pressures and a temporary slowdown in electric vehicle demand.
Operating profit fell 27.5 percent to 2.48 trillion won, however, as recovery in demand for display-based products lagged and marketing spending increased amid tougher competition. Earnings were also weighed down by several trillion won in nonrecurring costs related to a group-wide voluntary retirement program carried out in the second half of 2025 as part of efforts to streamline the workforce, the company said.
"The restructuring expenses are expected to help ease fixed-cost burdens over the medium to long-term period," LG Electronics said.
Business-to-business sales rose 3 percent from a year earlier to 24.1 trillion won. Combined operating profit from LG's vehicle solutions and eco solutions divisions exceeded 1 trillion won for the first time. Revenue from subscription-based offerings that combine products and services surged 29 percent on-year to nearly 2.5 trillion won, the company said.
The home appliance solution division posted sales of 26.1 trillion won, the highest on record, and an operating profit of 1.28 trillion won. Excluding one-off costs, operating profit edged higher, supported by product optimization, pricing adjustments and cost reductions, the company said.
To sustain growth in 2026, the company said it would expand its AI-powered appliance lineup and target emerging markets, while strengthening its built-in and component solutions businesses and advancing future initiatives such as AI homes and home robots.
The media entertainment solution division delivered record results, posting revenue of 11.1 trillion won and operating profit of 559 billion won, driven by the smooth conversion of order backlog into sales, the company said.
Demand may remain subdued this year amid macroeconomic uncertainty. LG said it would work to secure stable profitability by strengthening cooperation with automakers and improving operational efficiency while accelerating its push into future vehicle solutions, such as software-defined and AI-defined vehicles.
The eco solutions division reported revenue of 9.32 trillion won and an operating profit of 647.3 billion won. Sales increased on-year and operating profit also rose slightly when excluding restructuring costs, the company said.
LG forecasts that demand for heat pumps using eco-friendly refrigerants will grow overseas this year. The company added that it will continue efforts to secure opportunities in AI data center cooling, while advancing the commercialization of liquid cooling technologies and expanding partnerships for immersion cooling solutions.
herim@heraldcorp.com
