LG Electronics (KS:066570) is kicking off 2025 on a high note, releasing preliminary first-quarter results that surpassed analyst expectations. The South Korean tech giant reported an estimated consolidated operating profit of 1.67 trillion won (approximately $1.1 billion) for the January-March period — a remarkable 33% jump compared to the same period last year, and a sharp turnaround from the 109 billion won operating loss posted in the previous quarter.
Perhaps most impressive is LG's projected revenue of 23.73 trillion won for Q1, a record-breaking figure for the company in a first-quarter period. The strong performance was largely attributed to early steps taken to offset potential tariff-related risks, including production optimization strategies and broad improvements to the company's cost structure. Growth in higher-margin business segments also contributed meaningfully to the bottom line.
LG's home appliance division continued to be a reliable pillar of strength, driven by competitive product offerings across both premium and value-oriented segments. Expanding online sales channels and the growing adoption of subscription-based services further bolstered performance in this unit. Meanwhile, the vehicle solutions segment delivered consistent growth, supported by a robust order backlog and better profitability, with favorable foreign exchange movements providing an additional tailwind.
Not all divisions performed equally well, however. LG's HVAC business experienced a dip in both revenue and profit, largely due to geopolitical tensions — particularly instability in the Middle East. In response, the company is pivoting its focus toward high-growth opportunities in heat pump technology and cooling infrastructure for AI data centers, signaling a forward-looking approach to market challenges.
Despite the upbeat earnings figures, LG shares dipped 1.7% to 107,600 won in early trading. Final earnings results are expected later this month, which will provide a more complete picture of the company's financial health.
