[Edaily Reporter JAEMIN SONG ] LGELECTRONICS posted record-high second-quarter sales and operating profit this year. Despite rising logistics costs due to the war in the Middle East and a global slowdown in consumer spending, profitability improved across all business divisions, including home appliances, TVs, automotive components, and heating, ventilation, and air conditioning (HVAC). While tariff refunds on exports to the U.S. were reflected as one-time gains, analysts note that even excluding this factor, the company’s core earnings strength has significantly improved.

LGELECTRONICS announced on the 30th that it recorded consolidated revenue of 23.8265 trillion won and operating profit of 1.5791 trillion won for the second quarter of this year. These figures represent increases of 14.9% and 147.0%, respectively, compared to the same period last year, marking the highest second-quarter figures on record for both revenue and operating profit. Operating profit also exceeded the average securities firm forecast of 1.4226 trillion won by approximately 11%.

Cumulative revenue for the first half of the year reached 47.5537 trillion won, and operating profit reached 3.2528 trillion won, up 9.4% and 71.3%, respectively, compared to the same period last year. Operating profit for the first half alone surpassed last year’s full-year operating profit of 2.4784 trillion won.

These results reflect the refund of tariffs paid on exports to the U.S. last year. The securities industry estimates the refund amount at approximately 400 billion won, with most of it believed to have been reflected in the second-quarter results. However, even excluding the refund effect, normal operating profit is estimated to be around 1.2 trillion won. Favorable exchange rates, expanded sales of high-value-added products, improvements in costs and the supply chain, and strong performance from consolidated subsidiaries bolstered the company’s fundamental strength.

Favorable exchange rates, expanded sales of high-value-added products, and improvements in costs and the supply chain drove profitability. As high-margin businesses—including business-to-business (B2B), subscriptions, and webOS—grew, and the performance of consolidated subsidiaries improved, business divisions other than the Home Appliances Division—where the customs duty refund effect was concentrated—also delivered solid results.

The HS Business Division, responsible for home appliances, recorded revenue of 7.0757 trillion won and operating profit of 685.9 billion won. This marks the first time quarterly revenue has exceeded 7 trillion won. The operating profit margin stood at 9.7%, approaching 10% for the second consecutive quarter. This performance was supported by a strategy targeting both the premium and mid-to-low-end markets, the expansion of the subscription business, and the optimization of cost structures and supply chains.

The MS Business Division, responsible for TVs and platform businesses, posted revenue of 5.1146 trillion won and an operating profit of 219.4 billion won. Sales of premium TVs, such as OLED and QNED, increased due to the impact of global sporting events, while recovering demand in emerging markets and the growth of the webOS platform business also contributed to improved profitability.

The automotive components and HVAC businesses have established themselves as stable B2B revenue sources. The VS Business Division achieved record-high second-quarter figures for both revenue and operating profit, posting revenue of 3.0259 trillion won and operating profit of 191.2 billion won. Quarterly revenue exceeded 3 trillion won for the second consecutive quarter, and the operating profit margin stood at 6.3%.

The ES Business Division also posted revenue of 2.7261 trillion won and operating profit of 235.8 billion won, driven by expanded overseas air conditioner sales. The operating profit margin stood at 8.6%.

The company is also accelerating its business structure transformation. Second-quarter B2B revenue reached 6.5 trillion won, a 5% increase from the same period last year. B2B accounts for 36% of total company revenue, excluding LG Innotek. Revenue from the subscription business—which generates ongoing revenue even after product sales—also rose 5% to 660 billion won.

The key question is whether LGELECTRONICS can maintain profitability in the second half of the year, when the effect of tariff refunds wears off. LGELECTRONICS plans to defend its earnings by expanding sales in the Global South, growing its subscription and webOS businesses, and leveraging its order backlog in automotive electronics, while simultaneously cultivating robot actuators and AI data center (AIDC) cooling solutions as new growth engines.

An LGELECTRONICS official stated, “We are rapidly seeing tangible results from new businesses, such as our independently developed cooling water distribution device, which is poised to enter the core global AIDC supply chain.”