By Editor
LG Electronics (LG) has reported a solid performance for the third quarter of 2025, powered by resilient demand in its home appliance and vehicle component businesses. The company posted its second-highest third-quarter revenue on record, defying a sluggish global consumer environment.
The electronics giant, a major player in Kenya and East Africa, said consolidated revenue rose to USD 15.8 billion, with operating profit reaching USD 497 million for the three months ending September. The results reflect LG’s ongoing shift toward higher-margin business-to-business (B2B) operations and non-hardware services such as subscriptions and its webOS software platform.
Revenue from B2B operations grew 2% year-on-year to USD 4.3 billion, while income from appliance subscription services surged 31% to USD 505 million.
“Our strong third-quarter performance reflects the success of LG’s strategy to balance global innovation with local relevance,” said Donghun Lee, President of LG Electronics East Africa. “In East Africa, we continue to see growth in premium home solutions and energy-efficient technologies, a clear sign that consumers value innovation that makes everyday life better.”
Home Appliances Drive Growth
LG’s Home Appliance Solutions (HS) division generated USD 4.8 billion in revenue and USD 264 million in operating profit, supported by premium and mass-market product strategies. Expanded online and subscription offerings helped offset U.S. tariff impacts, while improved production efficiency boosted profitability.
The company expects the global appliance market to remain subdued through year-end but plans to expand its subscription and e-commerce channels while tightening operational costs.
TV Business Faces Competitive Pressures
The Media Entertainment Solutions (MS) unit, which includes LG’s TV business, reported USD 3.4 billion in revenue and an operating loss of USD 219 million. Heavier marketing costs and one-off retirement expenses dragged performance.
LG said it aims to enhance profitability by diversifying its webOS platform and growing its presence in emerging markets where demand remains firm.
Vehicle Solutions Hit Record Performance
LG’s automotive components business continued to shine, delivering record third-quarter revenue of USD 1.9 billion and an operating profit of USD 108 million, its highest since the division’s establishment. The operating margin surpassed 5% for the first time.
The company cautioned that evolving U.S. electric vehicle subsidy policies may present near-term challenges but remains confident of sustaining growth through product mix optimization and cost control.
Eco Solutions Expand Global Footprint
The Eco Solutions (ES) division, focusing on energy and HVAC systems, recorded USD 1.6 billion in revenue and USD 96 million in operating profit. Sales rose year-on-year, driven by strong domestic demand and online growth, though profits dipped slightly due to higher investment spending.
LG said it plans to launch new regional products and expand its footprint in commercial HVAC and industrial cooling. The company recently secured AI data centre cooling contracts across North America, Latin America, the Middle East and Asia, and is developing next-generation liquid cooling systems and immersion cooling partnerships to drive future growth.
