LG Electronics reported an operating loss of 109.4 billion won ($75.2 million) for the fourth quarter of 2025, swinging from a profit the year before due to U.S. tariffs and weak demand. Annual revenue hit a record 89.2 trillion won, up 1.7%, but operating profit fell 27.5% to 2.48 trillion won.
LG Electronics released its earnings guidance on January 9, projecting fourth-quarter sales of 23.85 trillion won, a 4.8 percent increase from the previous year, but an operating loss of 109.4 billion won ($75.2 million). This marks a reversal from the 135.4 billion won profit in the same period of 2024 and falls short of brokerages' consensus estimate of an 8.4 billion won profit. If confirmed, it would be the company's first quarterly operating loss since the fourth quarter of 2016.
The loss stems from delayed recovery in demand for display products, U.S. tariffs, rising marketing expenses amid intensifying competition, seasonal effects in the off-peak period for TVs and appliances, and one-off costs from voluntary retirement programs in the second half of 2025, estimated at around 300 billion won. "A delay in the recovery of demand for display products and increased marketing costs amid heightened competition weighed on performance," the company stated.
Analysts estimate losses of up to 55 billion won in the home appliance division and 330 billion won in the TV division. In contrast, the auto parts division achieved record revenue and operating profit, driven by premium in-vehicle infotainment trends. For the full year, consolidated revenue rose 1.7 percent to 89.2 trillion won, while operating profit declined 27.5 percent to 2.48 trillion won.
Yonhap News Agency quoted Kou Sun-young, an analyst at Yuanta Securities Korea, who attributed the weak results to market competition, materializing U.S. tariffs, and one-off retirement costs. However, she noted potential earnings improvement in 2026 through expansion in India, where LG Electronics India Ltd. listed on the stock market last year. LG Electronics plans to offset ongoing tariff burdens with operational efficiency gains.
