LG Electronics Inc. reported an operating loss in the fourth quarter, reversing a year-earlier profit, even as the South Korean consumer-electronics maker posted record revenue for 2025—underscoring the growing strain from weak display demand and rising costs.
The company said preliminary results showed an operating loss of about $84 million for the quarter, on revenue of roughly $18.3 billion. A year earlier, LG had recorded an operating profit. Management cited sluggish demand for display-related products, intensifying competition that lifted marketing expenses, and one-off restructuring costs linked to voluntary retirement programs.
For the full year, LG logged record revenue of approximately $68.5 billion, extending its sales growth streak to a second consecutive year. Annual operating profit, however, fell about 28% to around $1.9 billion, reflecting cost pressures across multiple business lines.
The fourth-quarter reversal highlighted persistent challenges in LG’s display-heavy segments, including televisions and IT displays, where demand has been slow to recover and competition remains intense. Elevated promotional spending weighed on margins, while restructuring costs were concentrated in the final months of the year. The company said the retirement-related expenses were nonrecurring and are expected to reduce fixed costs over the medium to long term.
Elsewhere, LG’s strategy of shifting toward higher-quality growth areas helped cushion full-year results. Business-to-business operations—such as automotive components and heating, ventilation and air-conditioning systems—continued to expand, as did platform-based businesses including webOS, maintenance services, subscription appliances and direct-to-consumer online channels. Together, these non-hardware and B2B segments now generate nearly half of total revenue, the company said.
LG’s home-appliance division retained its lead in the premium market and is expected to deliver record annual sales, aided by the steady expansion of its subscription offerings. The vehicle solutions business also posted record revenue and operating profit, with margins improving on the back of higher-value infotainment systems.
Looking ahead, LG said it will prioritize profitability in 2026. While pressure from U.S. tariffs is expected to persist, the company plans to blunt the impact through production efficiencies and tighter cost controls. Still, ongoing softness in display demand and broader cost uncertainties are likely to weigh on near-term performance.
The figures were prepared under Korean International Financial Reporting Standards and are preliminary. LG plans to release finalized results, including net income and detailed segment breakdowns, at an earnings briefing later this month.
