LG Electronics Reports Strong Q1 Profit Rebound
LG Electronics expects a solid rebound in first-quarter earnings, with preliminary results surpassing market expectations. The improvement is driven by strong demand across its core business segments and enhanced cost efficiency measures.
Operating Profit Jumps 33% Year-on-Year
The company forecasts consolidated operating profit of 1.67 trillion won (approximately $1.1 billion) for the January–March period. This represents a 33% increase compared to the same quarter last year and a sharp turnaround from an operating loss of 109 billion won in the previous quarter.
Revenue Hits Record First-Quarter Level
LG Electronics also expects revenue to reach a record 23.73 trillion won for a first quarter, highlighting strong underlying demand and business momentum.
Cost Efficiency and Strategic Adjustments Boost Performance
The earnings growth was supported by early actions to mitigate potential tariff risks, including production optimization. Additionally, improvements in the company’s cost structure and expansion into higher-margin segments contributed to stronger profitability.
Home Appliance Division Leads Growth
LG’s home appliance division remained a key driver of performance. Growth was supported by strong product competitiveness across both premium and mass-market categories, along with rising online sales and subscription-based services.
Vehicle Solutions Business Shows Steady Expansion
The company’s vehicle solutions segment also delivered consistent growth, backed by a strong order backlog and improved margins. Favorable foreign exchange conditions further supported profitability in this division.
HVAC Segment Faces Headwinds
In contrast, LG’s HVAC business experienced a decline in both revenue and profit due to geopolitical uncertainty, particularly in the Middle East. Despite this, the company plans to focus on growth opportunities such as heat pumps and cooling systems for AI data centers.
Share Price Reaction and Outlook
Shares of LG Electronics traded 1.7% lower at 107,600 won following the announcement. The reported figures remain preliminary, with full earnings results expected later this month.
