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LG Electronics Posts Q4 Operating Loss Amid Weak Demand, US Tariffs

LG Electronics swung to an operating loss in the fourth quarter, missing analyst expectations, as weak demand for display products and increased marketing costs hurt performance. The company cited the ongoing burden of US tariffs and heightened market competition as key challenges. Despite the quarterly loss, LG's annual revenue reached a new record high, driven by strong performance in its premium home appliance segment. Looking ahead, the company plans to focus investment on built-in appliances and B2B areas while expecting record results from its vehicle solutions business.

Key Points: LG Electronics Q4 Operating Loss on Weak Demand, US Tariffs

  • Q4 operating loss of $75.2M
  • Missed profit forecasts
  • Annual revenue hit record high
  • Display business estimated loss for 2025
  • Vehicle solutions business expected to set records
2 min read

LG Electronics turns to operating loss in Q4 on weak demand, US tariffs

LG Electronics reports a Q4 operating loss of $75.2M, missing forecasts. Weak display demand and US tariffs cited. Full-year revenue hits record high.

"A delay in the recovery of demand for display products and increased marketing costs... weighed on performance. - LG Electronics"

Seoul, Jan 9

LG Electronics on Friday said it turned to an operating loss from a year earlier in the fourth quarter, amid an overall contraction in demand caused by US tariffs.

Operating loss in the October-December period came to 109.4 billion won (US$75.2 million), shifting from a profit of 135.4 billion won a year earlier, the company said in a regulatory filing.

The performance missed Yonhap Infomax's projection of an operating profit of 20.5 billion won, reports Yonhap news agency.

Revenue increased 4.8 per cent on-year to 23.85 trillion won in the fourth quarter. The data for net income was not available.

For all of 2025, LG Electronics estimated its operating profit at 2.47 trillion won, down 27.5 per cent from a year earlier.

Annual revenue increased 1.7 per cent to a fresh high of 89.2 trillion won.

The data for net profit was unavailable. The company will release its final earnings report later this month.

"A delay in the recovery of demand for display products and increased marketing costs amid heightened competition in the market weighed on performance," LG Electronics said in a release. "In the second half, the company carried out a voluntary retirement program," the company said, noting the move is expected to ease the burden of fixed costs in the future.

LG Electronics said that while the U.S. tariff burden will continue this year, the company will make efforts to offset such hurdles by improving its operational efficiency.

While the company has not yet revealed detailed performance figures for each division, LG Electronics said its display businesses are estimated to have posted a loss for 2025, due to weak overall demand.

The company's crucial home appliance business is estimated to have posted record sales by maintaining solid leadership in the premium segment.

"This year, we plan to secure growth momentum by focusing investment on the built-in segment, along with business-to-business areas, including parts solutions covering motors and compressors," it added.

Its vehicle solution business is expected to set new records in terms of both sales and operating profit, it added.

- IANS

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Reader Comments

S
Sarah B
Interesting to see the home appliance segment doing well despite the overall loss. In India, their premium refrigerators and ACs are always in demand. Maybe they should double down on markets like ours where the brand has strong trust.
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Priya S
Voluntary retirement program sounds like a polite way of saying layoffs. Sad for the employees. Hope the Indian operations aren't affected. We have a big manufacturing plant in Greater Noida.
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Rohit P
US tariffs impacting a Korean company... shows how interconnected global trade is. India should learn from this and strengthen its own electronics manufacturing under PLI schemes. We can't be dependent on imports forever.
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Michael C
The vehicle solutions business growing is the key takeaway for me. The future is in EVs and smart components. If LG is betting big there, it's a smart long-term move, even if short-term numbers look bad.
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Kavya N
Honestly, as a customer, I'm more concerned about product quality and service than their quarterly profit. My LG washing machine is running fine for 5 years. That's what matters. Hope they maintain that standard.
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Vikram M
A respectful criticism: While they talk about operational efficiency, maybe they should also look at their pricing in India. Sometimes Korean

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