LG Electronics Inc (LG) posted consolidated third-quarter 2025 revenue of AU$23.4 billion and operating profit of AU$737.1 million, with solid contributions from its Home Appliance Solution (HS) and Vehicle Solution (VS) businesses offsetting external headwinds including US tariffs and a softer electric-vehicle market.
The results reflect LG’s continued shift toward higher-margin and recurring lines, including B2B offerings (vehicle systems, HVAC) and non-hardware businesses such as subscriptions and the webOS platform. B2B revenue rose 2% year-on-year to AU$6.3 billion, while appliance subscription revenue jumped 31% to AU$748.4 million.
Segment results and outlook
Home Appliance Solution (HS)
- Q3 performance: Revenue AU$7.04 billion; operating profit AU$391.4 million.
- Drivers: A dual strategy across premium and mass-market products, alongside growth in subscriptions and online channels. Production re-allocation and efficiency gains helped blunt U.S. tariff effects, lifting year-on-year profitability.
- Q4 outlook: Market conditions remain challenging on weak demand recovery and tougher competition. HS plans to keep scaling subscriptions and online sales, and pursue cost-base and fixed-cost reductions to sustain year-on-year profit improvement.
Media Entertainment Solution (MS)
- Q3 performance: Revenue AU$4.9 billion; operating loss AU$323.8 million.
- Context: Profitability was weighed by higher marketing to counter intensified competition and one-off costs tied to voluntary retirements.
- Focus ahead: Improve TV business efficiency and profitability while expanding webOS via advertising and broader content. The company will also push deeper into Global South markets where demand is comparatively resilient.
Vehicle Solution (VS)
- Q3 performance: Revenue AU$2.8 billion; operating profit AU$160.2 million. Revenue reached a third-quarter record; operating profit was the highest since the unit’s creation, with the operating margin surpassing 5% for the first time.
- Q4 considerations: Potential short-term pressure from shifts in US EV subsidy policies. LG targets steady margins through product-mix optimisation and additional cost and efficiency measures.
Eco Solution (ES)
- Q3 performance: Revenue AU$2.3 billion; operating profit AU$142.2 million. Revenue edged higher year-on-year on stronger domestic sales and continued growth in subscription/online channels, while operating profit eased on increased investment.
- Growth agenda: Region-specific product launches and expansion in commercial HVAC and industrial/power-generation chillers. ES has secured multiple AI data-centre cooling contracts across North America, Latin America, the Middle East and Asia, and plans to leverage these as references while preparing next-gen liquid-cooling commercialisation and advancing immersion-cooling partnerships.
Bottom line
Q3 shows resilience from HS and VS and ongoing portfolio rotation toward B2B and recurring revenue. Management signals continued cost discipline and mix upgrades into Q4 amid a still-soft consumer backdrop and policy-related uncertainty in EVs.