LG Electronics launches robot data factory, AI data center cooling orders top W3tr

Q3 2026 earnings results

Sales of 23.8 trillion won, operating profit of 781.9 billion won

B2B sales of 6.1 trillion won led by vehicle components and commercial displays

Home appliance profitability squeezed by higher logistics and marketing costs

Company warns of limited appliance and TV demand in Q4 amid weak consumer sentiment

Actuator business ramps up mass production while pursuing global orders

A robot-training data factory built by LG Electronics in Yangjae, Seoul. [LG Electronics]

LG Electronics has begun full operation of a robot-training data factory in Yangjae, Seoul starting in the fourth quarter, as the company steps up its robotics business.

Cumulative orders for cooling solutions supplied to AI data centers surpassed 3 trillion won ($2.27 billion) through the third quarter, a sharp increase that signals the company's new growth businesses are gaining traction.

LG Electronics said Wednesday that third-quarter sales reached 23.82 trillion won and operating profit came in at 781.9 billion won, up 8.9 percent and 13.5 percent, respectively, from the same period last year.

The home appliance and vehicle components businesses maintained steady profitability, while the TV business — which posted a loss in the third quarter of last year — saw a significant turnaround, driving double-digit growth overall.

Subscription business sales, covering both products and services, rose 8.6 percent year-on-year to 760 billion won. Business-to-business sales climbed 3.4 percent to 6.1 trillion won, driven by growth in the vehicle components and commercial display segments.

The Home Appliance & Air Solution (HS) division posted third-quarter sales of 7.04 trillion won and operating profit of 259.2 billion won, with sales topping 7 trillion won for the second consecutive quarter.

The division sustained its sales momentum through a two-track strategy spanning premium and mid-to-low-price segments, alongside a push into Global South markets. However, rising logistics costs and higher marketing spending pulled the operating profit margin down to 3.7 percent in the third quarter from 9.7 percent in the second quarter.

The Media Entertainment Solution (MS) division, which oversees the TV business, recorded third-quarter sales of 5.02 trillion won and operating profit of 146.7 billion won. Stronger sales of premium products including OLED TVs and an expanded push into emerging markets drove the improvement.

LG Electronics said it expects only a limited recovery in home appliance demand in the fourth quarter. TV demand is also forecast to fall year-on-year, as high oil prices and elevated interest rates weigh on consumer sentiment, adding to cost pressures from raw materials such as memory chips and display panels.

The LG MoMa (Mobile Manipulator), an autonomous mobile collaborative robot unveiled by LG Electronics at the 57th Korea Electronics Show on Oct. 13, transports materials and performs tasks. [LG Electronics]

The Vehicle Component Solutions (VS) division achieved third-quarter sales of 2.83 trillion won and operating profit of 190.3 billion won — its best third-quarter performance on record — as backlog orders converted into revenue and the in-vehicle infotainment business expanded. The operating profit margin stood at 6.7 percent.

LG Electronics said a clear recovery in global vehicle demand is unlikely in the fourth quarter. The company plans to sustain sales growth by drawing on its existing order backlog while focusing on operational efficiency, including strengthening cost competitiveness.

The Eco Solution (ES) division, which oversees the heating, ventilation and air conditioning business, posted sales of 2.17 trillion won, roughly in line with the same period last year, as it ramped up its response to commercial HVAC demand in North America and Europe. Operating profit was limited to 87.2 billion won, weighed down by lower sales in the domestic market and higher investment and labor costs.

LG Electronics said cumulative third-quarter orders for AI data center cooling solutions exceeded 3 trillion won. To meet the order volume, the company plans to invest 220 billion won to build a factory in the United States and expand domestic production capacity.

The actuator business, being developed as part of the robotics initiative, is simultaneously preparing for mass production and pursuing global orders in earnest, the company said. The country's largest robot data factory, built in Yangjae, Seoul, has begun partial operation.

The AI Home Solution business plans to build an ecosystem based on the latest Internet of Things technology in partnership with global big-tech companies.

Meanwhile, 730,000 treasury shares repurchased this year are scheduled to be fully retired within the fourth quarter as planned. LG Electronics also intends to return an additional 100 billion won to shareholders next year to enhance shareholder value.

joze@heraldcorp.com