#South Korea #Seoul #LG Electronics #Eco Solution #B2B Segment

LG Electronics Achieves Milestone in Q1 Earnings

On April 6, 2025, LG Electronics Inc. announced its preliminary earnings for the first quarter, revealing a remarkable consolidated revenue of KRW 22.7 trillion (approximately $19 billion). This achievement marks a historic milestone for the company, as it is the first time its first-quarter earnings have surpassed KRW 22 trillion. This noteworthy increase in revenue reflects LG's strategic focus on qualitative growth, especially in challenging macroeconomic conditions, including a global slowdown.

Driving Factors Behind Growth

The company's strong performance can largely be attributed to its Eco Solution (ES) business, which has emerged as a significant contributor to revenue and profitability, particularly in B2B sectors. LG's focus on subscription services, webOS-based content and advertising, and direct-to-consumer sales has also played a crucial role in driving its record revenues.

LG's operating profit reached a staggering KRW 1.3 trillion. This marks the sixth consecutive year that LG has reported an operating profit exceeding KRW 1 trillion, indicating a strong and stable profit structure. Factors contributing to profitability include an increase in revenue from high-margin sectors, efficient resource allocation, and normalization of raw material and logistics costs. The company's agility in global production operations has also enhanced overall operational efficiency.

Home Appliance Solutions and Innovations

In the realm of home appliances, LG has maintained a robust leadership position with its premium product offerings. The built-in appliance segment, specifically within the B2B category, along with sales of key components such as motors and compressors, have significantly bolstered the company's performance. The subscription model, which merges hardware and services, is rapidly evolving, with plans for expanded product offerings and improved customer service in 2025.

Media and Entertainment Solutions

Within the media and entertainment sector, LG aims to achieve synergy by integrating its display-based businesses, including TVs, laptops, and commercial displays. The 2025 TV lineup boasts enhanced artificial intelligence functionalities that offer personalized content recommendations and superior audio-visual experiences. New products, such as the ultra-light LG gram Pro AI laptop, have received acclaim in various global markets.

Automotive and HVAC Growth

In addition, the vehicle solutions business has been pivotal, particularly with the sale of high-value products within the in-vehicle infotainment segment. LG Magna e-Powertrain continues to advance its competitiveness through innovative technologies, improving operational capabilities across production locations.

Moreover, the HVAC sector has gained traction, having transitioned into an independent company in the first quarter. By honing in on tailored, order-based solutions, LG has increased its profitability within the commercial HVAC market, securing several major contracts abroad, such as in Singapore.

Moving forward, LG is committed to evolving its HVAC offerings, capitalizing on its proprietary technologies in compressors and heat exchangers while focusing on maintaining its leadership position through AI-driven innovations.

Conclusion

As LG Electronics prepares for its official earnings report later this month, the preliminary figures underscore a robust start to 2025. The notable success across various business segments illustrates LG's enduring commitment to innovation and qualitative growth, even amidst global economic uncertainties. The company plans to share more detailed information regarding each division's performance in its upcoming final earnings statement.

With a global workforce exceeding 75,000 and a diversified portfolio ranging from consumer electronics to energy solutions, LG Electronics continues to solidify its status as an industry frontrunner. Stay tuned for further updates on their progress and initiatives in the months ahead.