LG Electronics (066570.KS) achieved its highest-ever quarterly revenue by expanding business-to-business (B2B) operations and pioneering new markets, overcoming headwinds from U.S. tariff policies and the Middle East conflict. The company also delivered an earnings surprise, swinging to an operating profit after improving its cost structure and optimizing expenses. LG Electronics plans to leverage its improved performance to push into future AI-related industries including robotics and data center solutions.
The company said Monday that its first-quarter revenue came in at 23.733 trillion won and operating profit at 1.6736 trillion won on a preliminary basis. Revenue grew 4.4% year-on-year, marking a record high for any first quarter. Operating profit also beat the consensus estimate of 1.3819 trillion won by more than 21%, delivering a surprise. "Despite economic uncertainty, our core home appliance business drove growth based on product leadership and a solid market position," LG Electronics said. "B2B businesses including vehicle components also grew, contributing to the record revenue."
Industry observers say the first-quarter results confirm the payoff of LG Electronics' decision to designate built-in appliances as a key B2B growth business and accelerate revenue expansion. Built-in appliances are sold to builders and construction companies, with demand rising in the United States and Europe. LG Electronics has also been expanding its premiumization strategy to boost revenue and defend profitability, recently raising air conditioner prices by 7–10% in India, a mid-to-low-end market.
The Vehicle component Solutions (VS) division, which handles automotive electronics, reportedly expanded product sales on the back of rising electric vehicle demand. In particular, higher fuel costs driven by the Middle East conflict significantly boosted EV demand, especially in the United States, and this effect was partially reflected in the first-quarter results. Financial industry analysts estimated that the VS division posted revenue of 3.022 trillion won in the first quarter, up 6% year-on-year, with operating profit of 196 billion won, up 57%.
