LG Electronics posts strong Q3 on vehicle & AI demand
Thu, 29th Oct 2026 (Today)
LG Electronics reported third-quarter consolidated revenue of KRW 23.82 trillion and operating profit of KRW 781.9 billion. Cumulative operating profit for the first three quarters rose 55.9 per cent year on year to KRW 4.03 trillion.
Revenue for the first three quarters reached KRW 71.38 trillion, up 9.2 per cent from a year earlier, with all four of the group's main business units remaining profitable.
Growth in its home appliance and vehicle businesses, along with an improved television operation, supported the results. Revenue from subscriptions and business-to-business sales also increased during the quarter.
Subscription revenue, including product subscriptions and maintenance services, rose 8.6 per cent year on year to KRW 760 billion. B2B revenue increased 3.4 per cent to KRW 6.1 trillion.
Business units
The Home Appliance Solution division posted revenue of KRW 7.04 trillion and operating profit of KRW 259.2 billion. Revenue remained above KRW 7 trillion for a second consecutive quarter despite higher logistics and marketing costs.
Management expects only limited demand recovery in the home appliance market in the current quarter. The division plans to focus on Global South markets, where demand has been more resilient.
The Media Entertainment Solution division reported revenue of KRW 5.02 trillion and operating profit of KRW 146.7 billion. Both improved significantly from a year earlier, helped by higher OLED television sales and stronger demand in emerging markets.
The television business still faces pressure from memory and display panel costs. LG also expects TV demand to decline year on year as oil prices and interest rates weigh on consumer sentiment.
The Vehicle Solution division delivered record third-quarter revenue and operating profit of KRW 2.83 trillion and KRW 190.3 billion, respectively. The performance was driven by continued conversion of its order backlog and growth in in-vehicle infotainment.
Automotive demand recovery is also expected to remain limited in the current quarter. The division said it would continue to focus on converting secured orders while improving cost competitiveness.
The Eco Solution division recorded revenue of KRW 2.17 trillion and operating profit of KRW 87.2 billion. Sales were led by overseas commercial heating, ventilation and air conditioning markets, although profits were affected by expansion costs tied to future demand.
New areas
Beyond its established divisions, LG highlighted rapid growth in artificial intelligence data centre cooling. Cumulative orders for AI data centre cooling solutions exceeded KRW 3 trillion through the third quarter, up from about KRW 600 billion at the end of the first half.
LG is investing an additional KRW 220 billion to upgrade production sites and expand capacity, including securing a manufacturing base in the United States near major AI data centre clusters.
Partial operations have also begun at its Data Factory, which LG described as Korea's largest robotics data factory. Preparations for mass-production infrastructure for actuators are continuing, while the company seeks orders from prospective global customers.
In AI Home, LG plans to work with global technology companies to build an ecosystem based on internet of things technologies.
Outlook
LG said it would continue to pursue growth in B2B, subscription and online operations in the current quarter. It also said it would respond to external uncertainty by diversifying its supply chain and improving operational efficiency.
The company also plans to cancel all 730,000 treasury shares repurchased this year within the current quarter.
The latest figures suggest LG's push to broaden earnings beyond traditional consumer electronics is gaining traction, particularly in automotive, subscription services and cooling systems tied to data centre demand. At the same time, the outlook points to a more difficult consumer backdrop in appliances and televisions, where demand recovery remains subdued.