LG Electronics 4Q 2025 Earnings: Surprise Loss Amid U.S. Tariff Headwinds
LG Electronics reports a surprise operating loss in 4Q 2025 due to U.S. tariffs and weak demand, despite record-breaking annual revenue of 89.2 trillion won.
Record-breaking revenue wasn't enough to shield LG Electronics from the cold reality of global trade tensions. The South Korean tech giant reported a surprising operating loss for the fourth quarter of 2025, as escalating U.S. tariffs and intensified market competition hammered its bottom line.
Analyzing the LG Electronics 4Q 2025 Earnings Shock
According to a regulatory filing on Friday, LG Electronics posted an operating loss of 109.4 billion won (approx. $75.2 million) for the October-December period. This is a sharp reversal from a 135.4 billion won profit a year earlier, missing analyst projections of a 20.5 billion won profit reported by Yonhap Infomax.
While revenue grew 4.8% to 23.85 trillion won in the quarter, it couldn't offset the rising costs. For the full year of 2025, the company's revenue hit a fresh high of 89.2 trillion won, but annual operating profit plummeted 27.5% to 2.47 trillion won.
The Path to 2026: India and Vehicle Solutions
LG Electronics attributed the weak performance to a delay in the display market's recovery and a one-time cost from a voluntary retirement program. However, it's not all doom and gloom. The company's Vehicle Solutions division is expected to set new records, fueled by demand for premium automotive infotainment systems.
Kou Sun-young, an analyst at Yuanta Securities, suggests that 2026 could see a rebound. The company's strategic pivot toward India, following the LG Electronics India IPO in 2025, is designed to diversify its portfolio and reduce reliance on China and traditional markets.
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