LG Sees Record Q2 on Appliance Sales

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LG Electronics has posted its strongest second-quarter financial performance on record, driven by robust demand for its home appliances, premium televisions, and vehicle solutions businesses despite persistent global economic and geopolitical uncertainties.

The company reported consolidated revenue of KRW23.83 trillion (about Sh2.1 trillion) and operating profit of KRW1.58 trillion (Sh143.8 billion) for the second quarter of 2026.

Revenue rose 14.9 per cent compared to the same period last year, while operating profit surged 147 per cent, marking the highest second-quarter revenue and profit in the company’s history.

LG attributed the performance to the resilience of its market-leading home appliance business, continued growth in its vehicle solutions division and stronger demand generated by major global sporting events. The company also benefited from a higher share of premium, high-margin products, improved cost efficiencies across its global operations and a one-off gain from refunds of tariffs previously paid on exports to the United States.

The company’s business-to-business (B2B) segment continued to strengthen, generating KRW6.50 trillion (Sh591 billion) in revenue, a five per cent increase from a year earlier and accounting for 36 per cent of total company revenue.

LG’s subscription business, which combines products with after-sales services, also recorded five per cent growth to KRW660 billion (Sh60 billion), with the company saying it plans to expand the model into more international markets.

The Home Appliance Solution (HS) business delivered one of the strongest performances, reporting revenue of KRW7.08 trillion (Sh644 billion) and operating profit of KRW686 billion (Sh62.8 billion). Quarterly revenue exceeded KRW7 trillion for the first time, while operating margins approached 10 per cent for the second consecutive quarter.

LG said the division’s growth was supported by its strategy of serving both premium and mass-market consumers, alongside supply chain optimisation, improved cost structures, and the impact of U.S. tariff refunds. The subscription business also continued to provide a stable stream of recurring revenue.

The Media Entertainment Solution (MS) business posted revenue of KRW5.11 trillion (Sh464.7 billion) and operating profit of KRW219 billion (Sh27.2 billion), supported by growing sales of premium OLED and QNED televisions and continued expansion of its webOS platform business, particularly in Global South markets.

Meanwhile, the Vehicle Solution (VS) business maintained its position as one of LG’s fastest-growing B2B divisions, recording revenue of KRW3.03 trillion (Sh275.6 billion) and operating profit of KRW191 billion (Sh17.4 billion). The company surpassed KRW3 trillion in quarterly revenue for a second straight quarter while maintaining an operating margin above six per cent.

The Eco Solution (ES) business also posted solid results, with revenue increasing to KRW2.73 trillion (Sh248.3 billion) and operating profit reaching KRW236 billion (Sh21.4 billion), driven by stronger overseas sales of air conditioning systems and demand for energy-efficient cooling solutions.

Looking ahead, LG expects demand to soften slightly during the third quarter but plans to sustain growth by expanding in Global South markets, strengthening its premium product portfolio, and improving operational efficiency.

The company also plans to accelerate investment in emerging businesses, including robot actuators and AI data centre cooling technologies.

LG said its in-house developed Coolant Distribution Unit (CDU) is expected to play a key role in the rapidly growing global AI data centre supply chain as demand for advanced cooling solutions continues to rise.