LG Electronics (066570) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated sales reached KRW 22.74 trillion, up 7.8% year-over-year, with operating profit at KRW 1.26 trillion, maintaining a 5.5% margin despite global headwinds.

• Growth was driven by B2B, subscription services, and the webOS platform, with record-high quarterly sales and profits in VS and ES segments.

• Cost-cutting and portfolio transformation offset challenges from U.S. tariff risks, weak consumer sentiment, and FX volatility.

Financial highlights

• Net income for Q1 2025 was KRW 875.6 billion, a significant turnaround from a loss of KRW 713.7 billion in 4Q 2024 and up 49.6% year-over-year.

• EBITDA reached KRW 2.18 trillion, up from KRW 2.12 trillion in 4Q 2024 and KRW 1.04 trillion in 1Q 2024.

• Cash and cash equivalents at quarter-end were KRW 6.99 trillion, down from KRW 7.57 trillion at the end of 2024.

• Assets: KRW 65.9 trillion; liabilities: KRW 39.7 trillion; equity: KRW 26.2 trillion.

Outlook and guidance

• Persistent global uncertainties expected due to U.S. tariff risks, supply chain shifts, and weak consumer sentiment.

• Strategies include production relocation, premium product launches, operational efficiency, and risk mitigation for FX and tariffs.

• B2B, subscription, and webOS platform businesses to remain growth drivers.