LG's Q2 2025 profits drop sharply, outlines plans for future growth

The South Korean tech giant LG has reported preliminary revenue data for the second quarter of 2025. Its revenue was reported at KRW 20.74 trillion ($15.1 billion) and its operating profit came in at KRW 639.1 billion ($466.3 million). While it might seem like a lot of money, both figures represent a year-over-year decline. In Q2 2024, LG reported it had consolidated revenue of KRW 21.7 trillion ($15.8 billion) and operating profit of KRW 1.19 trillion ($868.2 million) - year-over-year the operating profit has declined by nearly 47%.

LG said that the decline reflects weaker consumer sentiment and a more challenging environment abroad, namely the trade tariffs imposed by the US, leading to higher LCD panel prices. More market competition is also negatively affecting LG’s profitability.

To try and get back its jive, LG says it’s planning to double down in areas where it sees high-margin and stable growth such as B2B sectors like vehicle solutions and heating, ventilation and air conditioning (HVAC). It also wants to scale its non-hardware businesses including the webOS platform services and subscription-based models. It’s also expected to enhance its direct-to-consumer sales through LGE.COM.

LG said that its vehicle solutions business was steadily growing even despite challenges that the industry is facing. The Korean firm has witnessed increased operating profit in this part of its business and plans to drive even more sales of its premium in-vehicle infotainment systems and diversify with new automotive content platforms.

It also plans to focus more on its HVAC operations with commercial air conditioning and industrial cooling. It’s not going to sit out on the AI hype here either, it plans to offer AI-powered technologies for data centers.

LG also mentioned that it plans to complete its purchase of OSO, a European hot water solutions company to join the rapidly growing air-to-water heat pump market as the continent makes the shift to green energy.

LG is a sprawling company in many sectors people don’t even realize. One area it is well known for competing in is media and entertainment. Unfortunately, during the second quarter, its media and entertainment solutions saw a slowdown in demand driven by higher LCD panel prices and increased marketing expenses.

With that said, the company is planning to cement its leadership in the premium OLED TV sector with new wireless products like the OLED evo M5. It said it’s also going to make webOS more competitive too by expanding into gaming and digital art content.

It’s unclear how long LG’s plans will take to turn the company’s earnings around but doubling down on the areas it excels in definitely seems like a good idea.

Image via Depositphotos.com

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