LG Electronics announced on October 7 that it recorded a consolidated revenue of 23.8 trillion won and an operating profit of 781.8 billion won for the third quarter of 2026. Revenue increased by 8.9% compared to the same period last year, while operating profit rose by 13.5%.
Despite challenging conditions, including the ongoing conflict in the Middle East, the company maintained a strong market position in its core businesses and continued to grow sales based on its differentiated competitive advantages. Growth also persisted in the high-potential global South region and in its business-to-business (B2B) operations.
Profitability improved significantly, with double-digit growth compared to the previous year. The home appliances and automotive electronics sectors served as cash cows, benefiting from solid profitability in both business-to-consumer (B2C) and B2B areas. The TV business also saw substantial improvements in profitability compared to last year. Efforts to enhance cost structures across the company, combined with the operating leverage from increased sales, offset rising logistics, material costs, and fixed expenses.
This year, LG Electronics has consistently achieved significant year-on-year growth in both revenue and operating profit each quarter. For the third quarter, the cumulative revenue reached 71.4 trillion won, with a cumulative operating profit of 4.3 trillion won. This marks the first time in 2026 that cumulative revenue exceeded 70 trillion won and operating profit surpassed 4 trillion won.
The company's robust profit generation capabilities are paving the way for investments in future new businesses. To meet the surging demand for AI data center cooling solutions, LG is enhancing its production bases both domestically and internationally and expanding its production capacity. In the field of physical AI, the company is investing in the largest data factory in Seoul's Yangjae and establishing production infrastructure for key robotic components in Changwon, South Gyeongsang Province.
The home appliances division has contributed to revenue growth through a dual-track strategy encompassing premium and volume segments, along with expansions in appliance subscriptions, online sales, and B2B operations. Continuous efforts to improve operational efficiency in manufacturing and logistics have also helped maintain a solid profit structure.
The media and entertainment division achieved revenue growth compared to last year, driven by increased sales of premium products like OLEDs and expansion in emerging markets. The webOS platform business continued its growth trajectory, maintaining profitability through an increased share of premium sales and efficient cost management.
The automotive electronics division has experienced stable growth based on smooth revenue conversion from its order backlog. The growth in revenue has been bolstered by an increased share of premium sales in the vehicle infotainment sector, establishing it as a stable cash cow in the B2B space.
The heating, ventilation, and air conditioning (HVAC) division maintained revenue levels comparable to the previous year, primarily driven by increased sales in overseas markets. However, profitability saw a slight decline compared to last year due to ongoing investments in new production capacity and workforce expansion for new business initiatives.
The preliminary results announced are based on the Korean International Financial Reporting Standards (K-IFRS). LG Electronics plans to disclose its consolidated net profit and business unit performance for the third quarter at an earnings briefing scheduled for the end of this month.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.