LG Electronics has posted its strongest-ever second-quarter performance, powered by solid growth across its home appliance, vehicle component and HVAC businesses. Despite concerns over slowing consumer demand, the company strengthened profitability through premium product sales, cost optimization, expansion of B2B businesses and growth in subscription services.
LG Electronics announced on July 30 that it recorded consolidated revenue of KRW 23.83 trillion and operating profit of KRW 1.58 trillion in the second quarter of this year. Compared with the same period last year, revenue increased 14.9% while operating profit surged 147%, marking the highest second-quarter results in the company’s history.
The strong performance came as LG successfully navigated challenging global market conditions, including sluggish consumer sentiment and geopolitical uncertainties. The company attributed the improvement in profitability to increased sales of high-value products, enhanced cost competitiveness, supply chain optimization and the refund of tariffs paid on U.S.-bound shipments last year, which was reflected as one-off income.
LG’s Home Appliance & Air Solution (HS) division was a major contributor to the record results. The division posted revenue of KRW 7.08 trillion and operating profit of KRW 685.9 billion, surpassing KRW 7 trillion in quarterly sales for the first time. Profitability remained strong, with operating margins approaching 10%.
The company’s strategy of expanding both premium and mass-market product lines helped offset the slowdown in global appliance demand. LG’s subscription-based appliance business also continued to grow, providing a stable recurring revenue stream through product management and service offerings after initial sales.
The Media Entertainment Solution (MS) division, responsible for LG’s TV business, recorded revenue of KRW 5.11 trillion and operating profit of KRW 219.4 billion. Growth in OLED and QNED premium TVs, along with expansion of the webOS-based content platform business, contributed to improved earnings.
LG’s Vehicle Solution (VS) division continued its rapid growth trajectory, emerging as one of the company’s key future growth engines. The division achieved record second-quarter results with revenue of KRW 3.03 trillion and operating profit of KRW 191.2 billion.
The automotive business maintained quarterly sales above KRW 3 trillion for the second consecutive quarter, supported by increased demand for vehicle infotainment systems, electric vehicle components and other automotive electronics supplied to global automakers.
The Eco Solution (ES) division, which oversees HVAC businesses, posted revenue of KRW 2.73 trillion and operating profit of KRW 235.8 billion. Strong overseas demand for air-conditioning systems helped drive growth, with the division achieving an operating margin of 8.6%.
LG’s business transformation toward B2B markets is also accelerating. B2B revenue reached KRW 6.5 trillion in the second quarter, up 5% year-on-year. Excluding LG Innotek, B2B businesses accounted for 36% of total company revenue, reflecting LG’s shift from a consumer electronics-focused company toward a broader technology solutions provider.
Looking ahead, LG plans to expand investments in emerging businesses, particularly AI infrastructure and robotics. The company is strengthening its AI data center (AIDC) cooling solution business as demand for high-performance computing infrastructure rises with the growth of generative AI.
LG is also seeking to enter the global supply chain for AI data centers with its independently developed coolant distribution units (CDUs), which are essential components for advanced liquid cooling systems.
In addition, LG’s home appliance division plans to accelerate its robotics actuator business, targeting opportunities created by the expansion of industrial and humanoid robot markets.
Analysts say LG Electronics is successfully transforming itself from a traditional home appliance manufacturer into a technology company focused on AI infrastructure, mobility and enterprise solutions. While home appliances continue to provide stable earnings, businesses such as vehicle components, HVAC, subscription services and AI-related solutions are expected to become new growth drivers.
However, market observers note that part of the second-quarter profit increase was influenced by one-time tariff refund gains. Future performance will depend on whether LG can sustain growth momentum in AI data center solutions, automotive electronics and premium consumer products during the second half of the year.
