LG posts AUD $23.4B revenue as home & vehicle units shine
LG Electronics has reported consolidated revenue of AUD $23.4B and an operating profit of AUD $737.1M for the third quarter of 2025.
The company's results for the period were bolstered by strong performances from its Home Appliance Solution (HS) and Vehicle Solution (VS) companies, achieved despite external challenges including U.S. tariffs and a slowdown in the electric vehicle (EV) market.
The business portfolio transformation and an emphasis on qualitative growth, with expansion in business-to-business (B2B) solutions and development of non-hardware businesses such as subscriptions and webOS, were highlighted by the group as key factors in maintaining resilience during the quarter.
B2B revenue for LG during the quarter increased by 2 per cent year-on-year, reaching AUD $6.3B. Revenues from appliance subscription services posted a notable jump, rising 31 per cent compared to the same period last year and reaching AUD $748.4M.
Home appliance gains
The Home Appliance Solution Company reported revenue of AUD $7.04B and operating profit of AUD $391.4M for the quarter. Management credited growth to a dual strategy that targeted both premium and mass-market segments, as well as ongoing expansion in subscription and online businesses.
Production site optimisation and operational efficiency were identified as having played a role in offsetting much of the impact from U.S. tariffs, resulting in improved profitability compared to the previous year.
"Growth was driven by a successful two-track strategy targeting both premium and mass-market segments, alongside continued expansion in subscription and online businesses. Production site optimisation and operational efficiency improvements helped offset much of the U.S. tariff impact, resulting in higher year-on-year profitability."
Looking forward to the fourth quarter, LG indicated that the global home appliance market is expected to remain challenging, with sluggish demand recovery and intensified competition. The company plans to continue broadening its subscription and online businesses, maintain a focus on qualitative growth, and seek further enhancements of the cost structure and fixed cost reductions to improve year-on-year profitability.
Media entertainment pressures
The Media Entertainment Solution Company recorded revenue of AUD $4.9B with an operating loss of AUD $323.8M. Increased marketing investment in response to heightened competition, along with one-time costs related to voluntary retirements, impacted profitability during the quarter.
"Profitability was impacted by increased marketing investments to address intensifying competition and one-time expenses related to voluntary retirements."
The company remains focused on boosting operational efficiency and restoring profitability within its television business, and will continue expanding the webOS platform by developing advertising opportunities and diversifying content. Efforts to strengthen the group's position in Global South markets will also continue, given the ongoing relative resilience of demand in those regions.
Vehicle solutions
Vehicle Solution Company posted revenue of AUD $2.8B and operating profit of AUD $160.2M. Both figures represented record achievements for a third quarter, with the operating profit margin surpassing 5 per cent for the first time since the company's establishment.
"Revenue reached an all-time third-quarter high, while operating profit achieved the highest quarterly level since the Company's establishment. The operating profit margin exceeded 5 percent for the first time."
Management noted that changes to U.S. EV subsidy policies may present short-term challenges in the next quarter. The company aims to sustain profitability by ongoing product mix optimisation, improvements to cost structure and efficiency initiatives.
Eco solutions performance
The Eco Solution Company reported revenue of AUD $2.3B and operating profit of AUD $142.2M. Revenue increased marginally over the year, supported by stronger domestic sales and continued growth in subscription and online business lines. Operating profit declined modestly as a result of increased investments.
The Eco Solution Company intends to strengthen growth through region-specific product launches, while targeting new opportunities in commercial HVAC systems and industrial and power generation chillers. The company has secured a number of AI data centre cooling solution contracts in regions including North America, Latin America, the Middle East and Asia.
"The Company aims to use these projects as strategic references to further expand its market presence. In parallel, it is preparing for the commercialisation of next-generation liquid cooling solutions for data centers and broadening partnerships to advance immersion cooling technologies."
Management plans to use these recent contracts as strategic references to facilitate further market expansion. Parallel initiatives are underway to commercialise next-generation cooling solutions for data centres and advance the company's immersion cooling technology partnerships.
