[Edaily Reporter JAEMIN SONG ] Driven by robust growth in its home appliance and automotive components businesses, LGELECTRONICS’ cumulative operating profit surpassed 4 trillion won for the first time through the third quarter of this year. The home appliance and automotive components divisions served as cash cows in the business-to-consumer (B2C) and business-to-business (B2B) sectors, respectively, while the profitability of the TV business also improved. However, third-quarter operating profit fell short of market expectations due to ongoing cost pressures, including logistics and material expenses.

LGELECTRONICS announced on the 7th that, on a consolidated basis, its preliminary third-quarter results for this year showed revenue of 23.827 trillion won and operating profit of 781.8 billion won. These figures represent year-over-year increases of 8.9% and 13.5%, respectively.

The results fell short of market expectations. According to financial information provider FnGuide Inc., the consensus estimate (average of securities firms’ forecasts) for LGELECTRONICS’ third-quarter performance was revenue of 24.215 trillion won and operating profit of 1.0301 trillion won. Actual revenue was approximately 1.6% below the forecast, while operating profit was approximately 24.1% lower. This is attributed to ongoing external uncertainties, such as the war in the Middle East, as well as rising costs—including logistics, materials, and fixed expenses—which weighed on profitability.

However, the core businesses demonstrated robust performance. In the Home Solutions (HS) division, revenue growth was driven by a two-track strategy targeting both the premium and volume segments, as well as the expansion of appliance subscription services, online sales, and B2B operations. The division also maintained a solid profit structure by improving operational efficiency in manufacturing and logistics.

The Vehicle Components (VS) business also continued its growth momentum, driven by the steady conversion of order backlog into revenue. In particular, the increasing share of premium product sales in the automotive infotainment business contributed to profitability. LGELECTRONICS is positioning the Vehicle Components business, alongside Home Appliances, as a B2B “cash cow” that generates stable profits.

The TV business, which had previously faced significant profitability pressures, also showed signs of improvement. The Media & Entertainment (MS) business saw sales growth, driven by increased sales of premium TVs such as OLED models, particularly in Shinhung markets. The webOS platform business also continued its growth trend. It maintained a profitable trend thanks to an increased share of premium product sales and efficient management of competitive expenses.

The Heating, Ventilation, and Air Conditioning (ES) business maintained revenue levels comparable to the same period last year through expanded sales in overseas markets. However, profitability declined slightly compared to the same period last year as investments continued, including securing new production capacity and hiring personnel for new business initiatives.

Stable profit generation from core businesses is creating room for investment in new ventures. As demand for cooling solutions has surged due to the expansion of artificial intelligence (AI) data centers, LGELECTRONICS is upgrading its domestic and international production facilities and expanding production capacity. Recently, the company has accelerated the expansion of its B2B business, securing a long-term contract to supply cooling solutions—including high-efficiency chillers—to AI data centers totaling 5 gigawatts (GW) in North America.

The company is also increasing investment in its robotics business, which falls under the physical AI sector. It is constructing a large-scale data factory in Yangjae, Seoul, to generate data for robot training, and is establishing mass-production infrastructure for actuators—key robot components—in Changwon, South Gyeongsang Province. This structure involves reinvesting profits generated from existing businesses into future growth areas such as cooling and robotics.

Driven by this growth momentum, LGELECTRONICS’ cumulative revenue for the first three quarters of this year reached 71.3807 trillion won, a 9.2% increase compared to the same period last year. Cumulative operating profit rose 55.9% to 4.0346 trillion won. This is the first time this year that cumulative revenue for the first three quarters has exceeded 70 trillion won and operating profit has surpassed 4 trillion won.

LGELECTRONICS stated, “We are establishing a virtuous cycle in which the robust profit-generating capacity of our core businesses is channeled into securing investment capacity for future new businesses,” adding, “We will continue to upgrade our domestic and international production bases and expand production capacity to meet the surging demand for AI data center cooling solutions, while also continuing to invest in future new businesses such as robotics.”

Meanwhile, LGELECTRONICS plans to announce its third-quarter net income and detailed business performance by division at an earnings briefing scheduled for the 28th.