![LG Electronics headquarters in Yeouido, Yeongdeungpo-gu, Seoul [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/07/07/news-p.v1.20260512.c08e7d482dca420b9dd4a76107ec0e9f_P1.jpg)
LG Electronics posted second-quarter operating profit of 1.58 trillion won ($1.03 billion), extending its streak of trillion-won quarterly earnings for a second consecutive quarter. The company accumulated more than 3 trillion won in operating profit through the first half alone, surpassing its full-year 2025 figure.
Sales of premium home appliances and TVs — the company's core businesses — drove the gains. A tariff refund of about 300 billion won from the US government, received during the quarter, also contributed to profitability. Analysts note, however, that earnings growth was strong even excluding the one-time refund.
In the second half, LG Electronics expects to begin booking meaningful revenue from two emerging businesses it has been building: AI data center cooling solutions and robotics. The company sees these as engines of sustained top-line growth.
LG Electronics disclosed Tuesday that second-quarter sales reached 23.83 trillion won and operating profit came in at 1.58 trillion won. Compared with the year-earlier quarter — when sales were 20.74 trillion won and operating profit was 639.7 billion won — sales rose 15% and operating profit surged 147%. Both figures are the highest ever recorded for a second quarter.
The first-half picture shows an even sharper improvement. Sales for the January–June period totaled 47.56 trillion won and operating profit reached 3.35 trillion won, up 9% and 71%, respectively, from the same period last year. LG Electronics' full-year 2025 operating profit was 2.48 trillion won, meaning the company surpassed that figure in just six months.
The results also blew past analyst estimates. Securities firms had forecast second-quarter sales of 22.5 trillion won and operating profit of 1.05 trillion won. Actual operating profit came in more than 500 billion won above those projections, delivering what analysts called an earnings surprise.
The turnaround is striking given where the company stood just two quarters ago. In the fourth quarter of last year, LG Electronics swung to a quarterly loss for the first time in nine years, hit by US tariff headwinds and the cost of a voluntary separation program. The rebound reflects accumulated efforts to streamline its workforce, improve cost competitiveness across business lines, and operate under a company-wide emergency management framework introduced to navigate economic uncertainty.
The company attributed the sales increase to stronger demand across its flagship home appliance and TV businesses. Air conditioner sales rose, particularly in overseas markets, as the seasonal peak arrived, and its vehicle components business continued to expand revenue, offsetting concerns tied to uncertainties such as the war in the Middle East. Operating profit also improved as high-margin businesses — including the webOS smart TV platform and home appliance subscription services — continued to grow.
A one-time gain also padded the bottom line. LG Electronics pursued refunds on tariffs it had paid on US-bound exports last year, recognizing revenue for amounts confirmed as refundable. Securities firms estimate the refund at around 300 billion won.
By division, the home appliance and air solution (HS) business sustained its growth trajectory through a two-track strategy targeting both the premium segment and the volume zone. The company is also expanding its B2B operations, including commercial washing machines and built-in appliances.
The media and entertainment (MS) business improved year-on-year, led by new premium TV products such as the OLED Evo and Micro RGB lineup. The division is focused on structural improvements across the board — sharpening cost competitiveness, maintaining healthy inventory levels and optimizing spending on competitive activities.
The vehicle component solutions (VS) business continues to grow on the back of a strong order backlog and strategic customer partnerships. It is positioning itself as a new B2B cash cow by actively responding to rising demand for premium infotainment systems. Ongoing cost-structure improvements are expected to sustain profitability-driven growth in the second half.
The heating, ventilation and air conditioning (ES) business saw sales rise, driven by overseas markets — particularly Europe, where record heat waves boosted demand. The division is actively pursuing new demand categories including heat pumps and unitary systems.
New businesses are expected to contribute more meaningfully in the second half. Through its component solutions unit, LG Electronics plans to accelerate growth by expanding its portfolio beyond home appliance parts such as compressors and motors to include robotic actuators. The company is also continuing to invest in AI data center cooling solutions within its air conditioning business.
jeongwan@heraldcorp.com
