LG Electronics Faces Deeper Q4 Losses Even as Annual Revenues Hit Record, Stock Dips to 99,100 Won

LG Electronics, the South Korean consumer electronics giant, disclosed mixed results recently, reporting a sharply widened quarterly loss despite posting higher sales. The company’s shares declined 1.8% to trade at 99,100 won, reflecting investor concerns over profitability challenges despite revenue growth.

Fourth Quarter Performance: Profitability Under Pressure

The fourth quarter painted a concerning picture for the company’s bottom line. LG Electronics recorded a net loss of 828.2 billion Korean won attributable to shareholders, marking a significant deterioration from the 714.9 billion won loss in the same quarter a year prior. Operating results were equally disappointing, with an operating loss of 109.0 billion won replacing the 135.4 billion won operating profit achieved previously.

However, the revenue picture told a different story. Consolidated sales surged to 23.85 trillion won, representing a 4.8% increase from 22.76 trillion won in the prior year quarter. Sequentially, the quarter-over-quarter sales expansion reached 9%, suggesting improved momentum as the year progressed.

Full Year 2025: Record Revenue Overshadowed by Cost Pressures

On an annual basis, LG Electronics achieved its second consecutive year of record-breaking consolidated revenue, reaching 89.2 trillion won. Yet this top-line success failed to translate into profit growth. Operating profit for fiscal 2025 totaled 2.48 trillion won, a decline from the previous year, primarily attributable to elevated marketing expenditures directed at display-based product lines and one-time expenses linked to organizational restructuring initiatives.

Business Segments: Mixed Performance Amid Market Headwinds

The company’s diverse business portfolio delivered uneven results. The Home Appliance Solution division (HS) demonstrated resilience, delivering sustained growth despite mounting U.S. tariff-related cost pressures that threatened margins. The Vehicle Solution segment (VS) held relatively steady performance, though it contended with a broader industry slowdown in electric vehicle demand that constrained expansion opportunities.

B2B revenue demonstrated steady traction, advancing 3% year-on-year to reach 24.1 trillion won. More impressively, the company’s emerging subscription-based business models generated accelerating momentum, with revenue surging 29% year-on-year to approach 2.5 trillion won, highlighting growing demand for recurring revenue streams.

Strategic Outlook

While LG Electronics achieved landmark revenue milestones in 2025, the widening gap between top-line growth and profitability underscores mounting operational challenges. Rising tariffs, organizational restructuring costs, and the need for aggressive marketing investments in competitive display markets have compressed margins. Yet the company’s expanding subscription revenue and steady performance across key divisions suggest management continues positioning LG Electronics for long-term resilience despite near-term headwinds.