LG Electronics remains in red in Q4 on weak demand, restructuring costs

Seoul, Jan 30 (IANS) LG Electronics said on Friday it remained in the red in the fourth quarter of 2025 from a year earlier, due mainly to weak market demand coupled with one-off costs caused by its restructuring programme.

Its net loss came to 725.9 billion won (US$505.7 million) for the October-December period, compared with a loss of 713.7 billion won posted a year earlier, the company said in a regulatory filing.

LG Electronics posted an operating loss of 109 billion won for the fourth quarter, marking a sharp turnaround from an operating profit of 135.4 billion won in the fourth quarter of 2024. Sales rose 4.8 percent on-year to 23.85 trillion won, reports Yonhap news agency.

The company attributed the weak performance to a delayed recovery in demand for TV products, along with increased marketing expenditures.

“In the second half, the company carried out a voluntary retirement program to improve the efficiency of its workforce structure, which led to expenditures worth hundreds of billions of won,” the company said.

For all of 2025, LG Electronics said its net profit came to 1.22 trillion won, more than doubling from the previous year.

The company posted 2.47 trillion won in operating profit for the year, down 27.5 percent from 3.41 trillion won in 2024. Annual sales rose 1.7 percent to 89.2 trillion won.

LG Electronics said the annual sales marked a new record, led by the home appliance business despite unfavourable conditions, including tariff burdens.

In detail, LG Electronics said its home appliance solution division posted an operating profit of 1.27 trillion won, as the company improved its production cost structure.

The media entertainment solution division turned to an operating loss of 750.9 billion won in 2025 amid intensifying market competition.

The vehicle solution division posted an operating profit of 559 billion won, with the company set to make efforts to take leadership in the software- and AI-defined vehicle industry.

For 2026, LG Electronics said it plans to expand its AI home appliance portfolio and prepare future growth engines, including home robotic products.

–IANS

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