South Korean tech LG Electronics posted record earnings for the second quarter, driven by solid growth in its core businesses and momentum from new growth engines. The company reported preliminary consolidated operating profit of 1.58 trillion won for the April-June period, a figure that represents a 147 percent increase from the same time last year. Revenue also climbed 14.9 percent to reach 23.83 trillion won. Both metrics marked record highs for a second quarter in the company’s history.
Drivers Behind the Growth
LG delivered these strong results despite unfavorable external conditions. The conflict in the Middle East and other market fluctuations did not halt the company’s upward trajectory. Officials attribute the performance primarily to the robust competitiveness of the home appliance business. Major sporting events also provided a positive impact on sales.
Support from the vehicle components business added further momentum. Additionally, a one-time recognition of U.S. tariff refunds contributed to improved profitability. The company established an emergency management system to actively respond to business uncertainties, which helped stabilize operations during volatile periods.
Related: Samsung Profits Surge on Chip Demand
Net profit climbed 28.1 percent to 781.3 billion won. This figure rounded out the quarterly picture. The company is making tangible progress in diversifying its business models through business-to-business operations and subscription services.
The shift toward B2B operations and subscription models reflects a broader industry trend where traditional hardware sales face saturation. By leaning into recurring revenue streams and business-to-business contracts, LG attempts to stabilize cash flow against the volatility of consumer electronics markets. It is a calculated move to reduce reliance on seasonal demand.
Business Unit Performance
Revenue from the B2B division rose 5 percent from a year earlier to 6.5 trillion won. This segment now accounts for 36 percent of companywide revenue, excluding LG Innotek. The subscription business, which combines products and services, also increased 5 percent year over year to 660 billion won. This growth was supported by expansion in overseas markets.
The Home Appliance Solution Company posted revenue of 7.08 trillion won and operating profit of 685.9 billion won. The performance was driven by a two-track strategy targeting both premium products and the volume segment, which was actually a bit of risk to take. Optimized cost structures and the positive impact of tariff refunds also helped the numbers. For the third quarter, the division plans to strengthen its presence in fast-growing markets in the Global South while accelerating its robot actuator business.
Related: Jesselton Waterfront City Takes Shape
The Media Entertainment Solution Company, which oversees the TV business, generated revenue of 5.11 trillion won and operating profit of 219.4 billion won. This was supported by higher sales of premium TVs and continued growth of its high-margin webOS platform business, which is a bit unusual. The division plans to continue improving profitability by expanding the share of premium products and growing the webOS platform business.
The Vehicle Solution Company posted record second-quarter revenue and operating profit of 3.03 trillion won and 191.2 billion won, respectively. Quarterly revenue exceeded 3 trillion won for the second consecutive quarter. The division plans to expand sales of high-value-added products based on its stable order backlog.
The Eco Solution Company, responsible for heating, ventilation, air conditioning, and cooling operations, reported revenue of 2.73 trillion won and operating profit of 235.8 billion won. This performance was supported by strong overseas air conditioner sales. The division is continuing to invest in new businesses, including cooling solutions for artificial intelligence data centers. Its independently developed coolant distribution unit is nearing entry into the core global supply chain for AI data centers, with related business results beginning to materialize.
