LG Electronics Achieves Record-High Q2 Revenue and Profit... Accelerates Transformation with AI, Vehicle Components, and Robotics (Comprehensive)

Home Appliance Sales Surpass 7 Trillion Won for the First Time;
Record-Breaking Performance in Vehicle Component Solutions
AIDC Cooling Solutions Secure 600 Billion Won in Orders in First Half
"Uncertainties Persist in Second Half... Focusing on Global South Markets"

LG Electronics achieved its highest ever second quarter performance despite adverse external factors such as macroeconomic uncertainties and rising ocean freight costs. This record was driven by strong performance in its core home appliance and vehicle component solutions divisions. At the same time, the company’s business-to-business (B2B) transformation, home appliance subscription business, and next-generation growth engines such as AI data center cooling solutions all showed balanced growth, resulting in visible improvements to business fundamentals.

On July 30, LG Electronics announced that its consolidated revenue for the second quarter of 2026 reached 23.8265 trillion won, with an operating profit of 1.5791 trillion won. Compared to the same period last year, revenue increased by 14.9% and operating profit soared by 147%. Both figures set new second quarter records for the company. Growth in premium product sales, improved cost structure, and operational efficiency were key drivers behind this performance.

LG Electronics Q2 2026 Earnings Release. LG Electronics

In addition, profitability was boosted by emergency management measures and the positive impact of tariff refunds. During its second quarter earnings conference call, LG Electronics stated, "The U.S. government’s tariff refund process proceeded smoothly, and we received a full refund for the relevant amount for the second quarter." The company estimated that the overall net gain, after subtracting one-off expenses from one-off income including the refund, amounted to around 300 billion won.

Analyzing by business division, the Home Appliance & Air Solution (HS) Division recorded sales of 7.0757 trillion won and an operating profit of 685.9 billion won. This is the first time the quarterly revenue surpassed 7 trillion won. Operating margin nearly reached 10% for a second consecutive quarter. The 'two-track strategy' targeting both premium and volume zone markets, together with steady growth in the home appliance subscription business, contributed to maintaining strong profitability.

The Home Entertainment (MS) Division, responsible for TVs, delivered sales of 5.1146 trillion won and operating profit of 219.4 billion won, aided by increased sales of premium OLED and QNED TVs and the highly profitable webOS platform business. Improved performance in emerging markets and greater operational efficiency significantly boosted operating profit compared to the previous year.

The Vehicle component Solutions (VS) Division achieved sales of 3.0259 trillion won and operating profit of 191.2 billion won, setting a new second quarter record. Quarterly sales exceeded 3 trillion won for the second consecutive period, and operating margin remained over 6%, solidifying the division as a reliable cash cow for the company. The Air Solution (ES) Division, focused on HVAC, posted sales of 2.7261 trillion won and an operating profit of 235.8 billion won, maintaining a robust 8.6% operating margin, buoyed by strong air conditioner sales overseas.

Yonhap News Agency

LG Electronics is focusing not only on home appliance manufacturing but also on enhancing its business portfolio. In the second quarter, B2B revenue rose by 5% year-on-year to 6.5 trillion won, accounting for 36% of the company’s sales excluding LG Innotek. Subscription business revenue also increased by 5%, reaching 660 billion won, as the company ramps up expansion in overseas markets.

In particular, the company is seeing tangible progress from the rapidly growing AIDC (AI data center) cooling solutions business. LG Electronics stated, "In the first half of the year, orders have surpassed 600 billion won, and we are currently producing related products," adding, "By the end of the year, we aim to secure AI data center projects worth several trillion won." The company also noted, "Some models of our liquid cooling CDU (coolant distribution unit) key components have received certification for Nvidia products, and certification procedures for additional models are also underway."

Efforts to strengthen business fundamentals in order to accelerate robotics have also moved forward. LG Electronics has established a dedicated 'Robotics Business Center' and is building the largest robotics data factory in Korea, scheduled to begin operations in the second half of the year. At this facility, the humanoid robot 'Cloid' will be introduced in phases to secure high-quality training data. Additionally, the company has begun initial production through its pilot robot actuator line at the Changwon plant, with plans to begin full-scale order-taking in the second half. Strategic multifaceted cooperation with Nvidia is underway in areas such as physical AI, applying robots to manufacturing sites, and next-generation computing platforms for SDVs (software-defined vehicles).

Regarding the logistics cost burden in the second half of the year, LG Electronics explained that it is controlling costs within manageable limits through renegotiation and restructuring of sea freight contracts. The company stated, "Sea freight rates are expected to peak in the third quarter and then return to last year’s levels from the fourth quarter as the market declines and the effects of renegotiation take hold." However, LG Electronics expects external uncertainties to persist, including prolonged conflict in the Middle East and rising memory raw material prices. Accordingly, the company plans to respond by intensifying its strategy in high-potential 'Global South' markets, renegotiating freight rates with carriers, and restructuring inland transport operations.

Meanwhile, LG Electronics announced that to enhance its corporate and shareholder value, it completed a 100 billion won share buyback ahead of schedule. All repurchased shares will be retired within the year, and the company plans to continue with policies aimed at increasing shareholder value going forward.

This content was produced with the assistance of AI translation services.