SEOUL, July 06 (AJP) - LG Electronics Inc. is set to deliver another strong quarter Tuesday as the Korean premium home appliance maker finds a robust position in the AI era through cooling systems essential for AI data centers and a resilient auto-parts business, making its earnings less dependent on consumer whims.
According to FnGuide consensus, LG Electronics is estimated to have earned 1.02 trillion won ($666 million) in operating profit on revenue of 22.54 trillion won ($14.73 billion) in the April-June period, slightly below the first quarter, when it reported 1.67 trillion won in operating profit and 23.72 trillion won in revenue.
While quarterly earnings are expected to decline sequentially following seasonally strong first-quarter appliance demand, analysts say the quality of earnings continues to improve as the company becomes less dependent on its traditional consumer electronics businesses.
A common theme across brokerages is the rapid expansion of LG Electronics' HVAC (heating, ventilation and air conditioning) business, particularly products designed for AI data centers.
Lee Joo-hyung, an analyst at Eugene Investment & Securities, said the company's AI data-center chiller business has emerged as one of its most important growth engines, noting that qualification tests with North American hyperscale customers are nearing completion. He added that its broader positioning as an integrated cooling solutions provider could become a meaningful earnings driver over the medium term.
Analysts also expect the company's Vehicle Solution (VS) business to remain a stable contributor after several quarters of improving profitability.
Park Jun-seo of Mirae Asset Securities said higher-margin in-vehicle infotainment products, ongoing cost reductions and a favorable product mix should continue supporting margins in the automotive components business during the second quarter. He also identified potential U.S. tariff refunds as a key variable that could lift quarterly earnings above market expectations.
A similar view was offered by Kim Min-kyung of Hana Securities, who expects LG Electronics' structural earnings recovery to continue despite a challenging macroeconomic environment. Kim cited company-wide cost discipline, marketing efficiency and expanding AI-related businesses—including data-center cooling and robotics—as key factors supporting earnings resilience.
Among domestic brokerages, Kyobo Securities presented one of the most optimistic forecasts, projecting operating profit of about 1.5 trillion won, roughly 50 percent above prevailing market consensus. Choi Bo-young attributed the upside to an estimated 300 billion won in tariff refunds, stronger-than-expected profitability at affiliate LG Innotek and continued margin improvements across LG Electronics' core home appliance and vehicle solutions businesses.
Despite the improving outlook, analysts noted that uncertainties remain, including global consumer demand for TVs and home appliances, marketing expenses and geopolitical risks that could affect logistics costs and consumer spending.
Tuesday's earnings release will provide only preliminary consolidated revenue and operating profit figures. Detailed business division results—including the Home Appliance Solution (HS), Media Entertainment Solution (MS), Vehicle Solution (VS) and Eco Solution (ES) divisions—will be released later this month alongside the company's earnings conference call.
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