LG Electronics’ cumulative operating profit tops 4 trillion won through Q3 as home appliances and vehicle components drive growth

[Financial News] LG Electronics’ cumulative operating profit for the first three quarters of this year topped 4 trillion won, marking the first time the figure has exceeded that threshold. The result is attributed to steady growth led by its home appliance and vehicle components businesses, as well as improved performance in its TV business. Building on the competitiveness of its core businesses, LG Electronics plans to accelerate growth in new businesses, including rapidly expanding AI data center cooling solutions and robotics, and make them future growth drivers.

LG Electronics said on the 28th that, on a consolidated basis, it posted revenue of 23.8241 trillion won and operating profit of 781.9 billion won in the third quarter of this year. Those figures were up 8.9% and 13.5%, respectively, from the same period last year. The operating margin was 3.3%.
Cumulative revenue through the third quarter of this year rose 9.2% from the same period last year to 71.3778 trillion won. Cumulative operating profit increased 55.9% to 4.0347 trillion won.
LG Electronics said it remained profitable across all divisions despite an uncertain external environment, including the war in the Middle East.
The Home Appliance Solution Division (HS Division), which oversees home appliances, posted third-quarter revenue of 7.0444 trillion won and operating profit of 259.2 billion won. Thanks to its dual-track strategy of targeting both the premium and mid-to-low-end markets, revenue topped 7 trillion won for the second consecutive quarter. The division maintained profitability through operational efficiencies despite higher logistics and marketing costs.
The Vehicle Solution Business Division (VS), which oversees the vehicle components business, posted revenue of 2.8261 trillion won and operating profit of 190.3 billion won. Both figures were the highest ever for a third quarter. Performance was driven by the conversion of its existing order backlog into revenue and growth in its in-vehicle infotainment (IVI) business.
The MS Division, which oversees the TV business, posted revenue of 5.0215 trillion won and operating profit of 146.7 billion won. Performance improved from the third quarter of last year, helped by increased sales of premium products such as OLED TVs and expanded revenue in emerging markets.
The ES Business Division, which oversees heating, ventilation and air conditioning (HVAC), posted revenue of 2.1736 trillion won and operating profit of 87.2 billion won. Sales increased, particularly in overseas commercial HVAC markets, but higher costs to support expanded orders for future new businesses had some impact on profitability.
Business-to-business (B2B) and subscription businesses also continued to grow. Third-quarter B2B revenue was 6.1 trillion won, up 3.4% from the same period last year. Subscription revenue, including products and services, rose 8.6% to 760 billion won.

LG Electronics plans to step up the expansion of new businesses, including AI data center cooling solutions and robotics.
Cumulative orders for its AI data center cooling solutions business topped 3 trillion won through the third quarter, a substantial increase from about 600 billion won in the first half. LG Electronics is pursuing an expansion of production capacity at home and abroad, including securing a production base in the United States, with an additional investment of 220 billion won.
In its robotics business, the country’s largest data factory has begun partial operations. The company is building mass-production infrastructure for actuators, a key robot component, while also pursuing orders from global customers.
In the fourth quarter, LG Electronics plans to expand its B2B, subscription and online businesses and secure profitability by diversifying its supply chain and improving operational efficiency.
The home appliance business will increase sales with a focus on the Global South, where demand is relatively robust, while the TV business will focus on increasing the share of premium products. The vehicle components business will continue to grow revenue based on its existing order backlog, and the HVAC business will focus on responding to large-scale AI data center projects.
In addition, LG Electronics plans to cancel all 730,000 shares of its own stock purchased during the year in the fourth quarter.

[email protected] Park So-hyun Reporter