LG Electronics (066570) investor relations material

Executive summary

• Q3 2025 consolidated sales reached ₩21.87 trillion with operating profit at ₩688.9 billion, maintaining revenue levels year-over-year despite global demand contraction and intensified competition, especially in the display business.

• Operating profit declined year-over-year due to increased competition and one-off workforce restructuring costs, aimed at enhancing long-term competitiveness.

• Qualitative growth was driven by subscription services, webOS platform expansion, and B2B business, with a focus on sustainable and diversified revenue streams, including online direct sales.

• The Indian subsidiary IPO was highly successful, raising ₩1.8 trillion and achieving 54 times oversubscription, reinforcing market leadership in India, with proceeds to be used for growth investments and operational efficiency.

Financial highlights

• Q3 net income was ₩461 billion, with cash flow from operations at ₩1.63 trillion and a cash balance of ₩7.96 trillion at quarter-end.

• Assets stood at ₩67.2 trillion, liabilities at ₩40.3 trillion, and equity at ₩26.9 trillion.

• EBITDA for Q3 2025 was ₩1.59 trillion.

• Leverage ratios remain healthy, with liabilities to equity at 150%, debt to equity at 55%, and net debt to equity at 24%.

Outlook and guidance

• Persistent U.S. tariffs, geopolitical risks, and weak consumer sentiment are expected to continue impacting Q4 2025.

• Scenario-based strategies and production optimization will be used to mitigate tariff impacts and sustain profitability.

• Continued focus on expanding subscription, B2B, and online direct sales, with region-specific strategies for growth in the global south and new business models like automotive electronics.

• Emphasis on cost structure improvement and dynamic organizational changes for long-term competitiveness.