LG Electronics posts record first-quarter revenue rise

LG Electronics reported first-quarter revenue of USD $16.23 billion and operating profit of USD $1.14 billion. Revenue was the highest for any first quarter in the company's history.

First-quarter revenue rose 4.3 per cent from a year earlier, while operating profit increased 32.9 per cent, supported by the home appliance, television and vehicle businesses despite broader economic uncertainty.

Combined quarterly revenue from the home appliance and vehicle operations surpassed USD $6.84 billion for the first time. Business-to-business operations generated USD $4.45 billion in the quarter, accounting for 36 per cent of total revenue, while subscription revenue rose 15 per cent year on year to USD $438 million.

Home appliances

The home appliance division recorded revenue of USD $4.75 billion, an all-time quarterly high, and operating profit of USD $390 million. It maintained an operating margin of 8.2 per cent despite higher raw material costs and the impact of US tariffs.

Growth in the division was driven by a two-track strategy targeting both premium and mass-market buyers, along with continued expansion in subscription and online sales. LG aims to drive further growth by strengthening its product line-up, targeting key markets in the Global South, and tightening supply chains and cost controls.

Media and webOS

The media and entertainment division posted revenue of USD $3.54 billion and operating profit of USD $254 million. The business returned to profitability from the previous quarter and improved profitability compared with a year earlier.

LG attributed the performance to sales of premium products, growth in its webOS platform business, lower marketing costs and reduced fixed costs. It plans to expand partnerships and invest further in webOS content.

Vehicle growth

The vehicle solutions division delivered record quarterly revenue and operating profit of USD $2.49 billion and USD $145 million, respectively. Operating margin rose above 6 per cent for the first time.

Growth was driven by demand for in-vehicle infotainment systems and wider adoption across more vehicle models, particularly among European carmakers. The business also continued to benefit from a solid order backlog, reinforcing its role in the group's push to expand business-to-business revenue.

Cooling and services

The eco solutions division reported revenue of USD $1.93 billion and operating profit of USD $170 million. Both fell from a year earlier, which LG attributed to weaker local consumer sentiment linked to conflict in the Middle East and higher personnel costs.

LG is seeking to grow non-hardware revenue in that division through services such as installation and maintenance. It is also increasing its focus on region-specific products, including unitary systems in North America and heat pump systems in Europe, while pursuing growth in cooling systems for AI data centres.

The quarter highlighted the growing importance of recurring revenue streams and business customers in LG's earnings mix. Subscription sales continued to grow at a double-digit pace, while the vehicle business and other business-facing operations accounted for a larger share of group revenue, alongside the group's established consumer electronics and appliance businesses.

First-quarter business-to-business revenue increased 1 per cent from a year earlier and 19 per cent from the previous quarter. The figures indicate the group is relying more heavily on areas such as automotive systems, platform services and subscriptions as it navigates uneven consumer demand across global markets.

A company breakdown showed that home appliances remained the largest contributor among the disclosed divisions, followed by media and entertainment, vehicle solutions and eco solutions. The revenue mix across consumer and commercial operations reflects LG's effort to balance mature product categories with service and industrial segments that can offer steadier returns.