LG Electronics Releases Preliminary Earnings for First-Quarter 2026

News Summary:
· LG Electronics recorded first-quarter 2026 consolidated revenue of KRW 23.73 trillion and operating profit of KRW 1.67 trillion.

· Revenue reached the highest first-quarter level in the company’s history, supported by sustainable growth in core businesses and steady expansion in B2B segments including vehicle solutions.

· Operating profit exceeded market expectations and improved year-on-year, supported by early actions to mitigate potential tariff risks, stronger cost structure improvement efforts and growth in highly profitable businesses.

· LG will continue to respond proactively and flexibly to external uncertainties, including geopolitical risks, rising raw material prices and higher logistics costs.

LG Electronics Inc. (LG) today announced its preliminary earnings results for the first quarter of 2026, reporting a consolidated revenue of KRW 23.73 trillion and operating profit of KRW 1.67 trillion.

Revenue reached the highest first-quarter level in the company’s history. Despite continued macroeconomic uncertainty, the company’s core businesses, including home appliances, maintained growth based on strong product competitiveness and solid market positions. Expansion in B2B businesses, including vehicle solutions, also contributed to the record first-quarter revenue.

Operating profit exceeded market expectations and improved year-on-year. The improvement was driven by proactive tariff response measures, including production optimization, as well as stronger company-wide cost structure improvement efforts focused on profitability-based growth. Continued growth in platform, subscription and online sales businesses also supported earnings.

As external uncertainty persists, including geopolitical instability, rising raw material prices and higher logistics costs, LG will implement flexible and proactive measures to minimize potential business impact.

Home Appliance Business
LG’s home appliance business continued to grow by addressing both premium and volume segments in line with changing market demand. Growth in online sales and the appliance subscription business also contributed to performance. To strengthen profitability, LG plans to further accelerate cost structure innovation efforts amid ongoing raw material price pressure. The company will also foster future growth drivers such as home robots and robot components, including actuators.

Media and Entertainment Business
LG’s media and entertainment business improved profitability year-on-year through a focus on operational efficiency and returned to profit compared with the previous quarter. The strategically important webOS platform business also maintained strong growth. This year, LG plans to sustain efficient business operations while leveraging its differentiated lineup, including OLED TVs, premium LCD TVs such as Micro RGB, and lifestyle TVs.

Vehicle Solutions Business
LG’s vehicle solutions business continued its stable growth based on a solid order backlog. Profitability also improved year-on-year, supported by ongoing cost structure improvement efforts. Given the business’s high proportion of overseas customers, foreign exchange conditions also had a partially positive effect on profitability.

HVAC Business
LG’s HVAC business saw revenue and operating profit decline year-on-year due to market uncertainty, including geopolitical factors in the Middle East. Going forward, LG will target high-potential opportunities such as heat pumps, in line with the global shift from fossil fuels to electricity. The company also plans to expand beyond air-cooled solutions into next-generation technologies such as liquid cooling, while focusing on opportunities in AI data center cooling.

These figures are tentative consolidated earnings based on K-IFRS and are provided for investor reference prior to LG Electronics’ final earnings results, including net profit. Details regarding each Company will be announced officially later this month.