Cumulative Operating Profit Rises 55.9 Percent Year-on-Year, Driven by
Growth in Home Appliance and Vehicle Solutions and an Improved TV Business
News Summary
SEOUL, Oct. 28, 2026 — LG Electronics Inc. (LG) today announced its financial results for the third quarter of 2026, reporting consolidated revenue of KRW 23.82 trillion and operating profit of KRW 781.9 billion. For the first three quarters, cumulative consolidated revenue reached KRW 71.38 trillion, up 9.2 percent year-on-year, while cumulative operating profit totaled KRW 4.03 trillion, an increase of 55.9 percent.
Despite external headwinds, including geopolitical uncertainties, LG’s core businesses continued to grow, supported by their solid market positions and differentiated products. In the third quarter, revenue from LG’s subscription business, which encompasses both product subscriptions and maintenance services, rose 8.6 percent year-on-year to KRW 760 billion, while B2B revenue increased 3.4 percent to KRW 6.1 trillion. Operating profit grew by double digits year-on-year. The home appliance business and vehicle solutions business maintained stable profitability, while the media and entertainment business significantly improved its year-on-year performance.
LG is building on the strength of its core businesses while developing new growth engines and working to translate them into business results. Cumulative orders for AI data center (AIDC) cooling solutions exceeded KRW 3 trillion through the third quarter, up sharply from approximately KRW 600 billion at the end of the first half. LG is also investing an additional KRW 220 billion to upgrade production sites and expand capacity, including by securing a strategic manufacturing base in the United States near major AIDC clusters.
In robotics, LG’s Data Factory, described as Korea’s largest robotics data factory, has begun partial operations. Preparations for mass-production infrastructure for actuators are proceeding as planned, while LG is also pursuing orders from prospective global customers. In AI Home solutions, LG plans to work with leading global technology companies to build an AI Home ecosystem based on the latest Internet of Things (IoT) technologies.
In the fourth quarter, LG will continue to pursue growth in its B2B, subscription and online businesses. The company will respond to changes in the external environment by diversifying its supply chain and improving operational efficiency. As planned, LG will cancel all 730,000 treasury shares repurchased this year within the fourth quarter.
Third-Quarter 2026 Results and Outlook by Business Company
The LG Home Appliance Solution (HS) Company
The HS Company reported revenue of KRW 7.04 trillion and operating profit of KRW 259.2 billion. Revenue exceeded KRW 7 trillion for the second consecutive quarter, reflecting the performance of a dual-track strategy covering both premium and volume segments. Despite short-term increases in logistics and marketing costs, the Company maintained stable profitability through operational efficiency.
Demand recovery in the home appliance market is expected to remain limited in the fourth quarter. The HS Company plans to expand sales by focusing on the Global South markets where demand remains relatively resilient.
The LG Media Entertainment Solution (MS) Company
The MS Company reported revenue of KRW 5.02 trillion and operating profit of KRW 146.7 billion, with both metrics improving significantly year-on-year. Higher sales of premium products such as OLED TVs, together with increased sales in emerging markets, contributed to the improvement.
Cost pressures from memory and display panels are expected to continue in the fourth quarter. TV demand is projected to decline year-on-year as high oil prices and interest rates weigh on consumer sentiment. The Company will continue to expand premium product sales and build a more resilient business structure.
The LG Vehicle Solution (VS) Company
The VS Company reported revenue of KRW 2.83 trillion and operating profit of KRW 190.3 billion, both record highs for a third quarter. Performance was supported by continued conversion of its order backlog and growth in the in-vehicle infotainment business. Higher revenue and operational efficiency also helped sustain profitability.
Recovery in automotive demand is expected to remain limited in the fourth quarter. The Company will continue to grow revenue by converting its secured order backlog while improving operational efficiency, including through stronger cost competitiveness.
The LG Eco Solution (ES) Company
The ES Company reported revenue of KRW 2.17 trillion and operating profit of KRW 87.2 billion. Sales increased, led by overseas commercial HVAC markets. Profitability was partly affected by costs associated with expanding capacity to meet growing orders for future growth areas.
In the fourth quarter, the Company will make timely delivery of large-scale AIDC cooling projects its top priority as it works to accelerate growth.
Earnings Conference Call
LG Electronics will hold a Korean and English conference call on October 28, 2026, at 16:00 Korea Standard Time. Participants are instructed to pre-register online to receive a private PIN. To join the call, dial +82 31 810 3130 and enter passcode 6418#, followed by the PIN. The presentation file will be available for download on the LG Electronics website prior to the call.
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