LG Electronics posts record nine-month profit as B2B grows

LG Electronics reported preliminary third-quarter 2026 revenue of KRW 23.83 trillion and operating profit of KRW 781.80 billion, with both up from a year earlier.

The South Korean electronics group said its B2B operations maintained momentum during the quarter, while the HVAC business kept revenue broadly in line with the same period last year, supported by sales growth in overseas markets.

For the first nine months of 2026, LG recorded consolidated revenue of KRW 71.38 trillion and operating profit of KRW 4.03 trillion. Both were record highs for the period, with nine-month revenue exceeding KRW 70 trillion and operating profit reaching KRW 4 trillion for the first time.

The latest quarterly figures point to a year in which LG has posted annual growth in both revenue and operating profit in every quarter so far, despite pressure from geopolitical instability and broader macroeconomic uncertainty.

Business mix

LG's core businesses held their market positions, while B2B expansion helped drive overall revenue growth. The group also pointed to growth across the Global South as part of its broader commercial push.

Home appliances and vehicle solutions remained the main profit contributors in the quarter. The television business also improved earnings from a year earlier, helped by a higher share of premium products and cost-cutting efforts.

Company-wide cost controls and higher sales volumes helped offset increases in logistics, materials and fixed expenses. LG said this supported a double-digit improvement in profitability from a year earlier.

Divisional trends

In home appliances, growth came from a dual-track approach aimed at both premium and volume segments. LG also cited gains from appliance subscriptions, online sales and B2B activity, while improved efficiency in manufacturing and logistics supported profitability.

In media and entertainment, revenue rose from a year earlier, driven by higher sales of premium products such as OLED televisions and by growth in emerging markets. LG said its webOS platform business also continued to expand.

The vehicle solutions division maintained steady growth as existing orders converted into revenue. A higher share of premium in-vehicle infotainment sales also improved profitability, reinforcing that unit's role within LG's B2B portfolio.

Performance in eco solutions was more mixed. The HVAC business posted revenue broadly in line with the same quarter last year, supported by international sales, but profitability edged down as the group continued to invest in manufacturing and new business resources.

Investment focus

Alongside the earnings update, LG outlined continued spending in areas it sees as future growth drivers, including cooling systems for AI data centres and robotics infrastructure.

It is upgrading production facilities and expanding manufacturing capacity in Korea and overseas to meet rising demand for AI data centre cooling systems. LG is also investing in robotics production, including a data factory in Yangjae, Seoul, and mass-production infrastructure for robot actuators in Changwon.

The scale of those investments helps explain why investors are likely to focus not only on current earnings growth, but also on the balance between maintaining profitability and funding expansion into newer industrial markets. LG's latest figures suggest its established appliance, television and vehicle operations are still carrying much of that burden.

The preliminary results do not include net profit. More detailed divisional disclosures are due with the company's final earnings results later this month.