HVAC business offsets LG Q2 performance
27th July 2025
SOUTH KOREA: Increased sales in its HVAC segment helped offset a dip in LG Electronics group’s performance in Q2.
While the South Korean manufacturer saw group operating profit dive 46.6% to KRW 639.4bn ($464m) compared to Q2 2024, its Eco Solution business achieved a record second-quarter performance.
Group revenue dipped 4.4% to KRW 20.74 trillion ($15bn), and net income reduced 3.1% to KRW 609.7bn ($441m) in Q2.
According to LG, the figures were affected by continued global market softness, increased tariff burdens driven by changes in US trade policy, and intensified competition. Rising costs, including logistics expenses, also weighed on overall profitability compared to the same period last year.
LG Eco Solutions, which includes its HVAC business, achieved second-quarter revenue of KRW 2.64 trillion (up 4%) and operating profit of KRW 250.5bn, a record Q2 performance.
Growth in its LG Eco Solutions business was attributed to strong demand for residential air conditioners in Korea and continued expansion in the commercial and industrial HVAC segments.
Looking ahead to the second half of the year, the LG says it aims to capture replacement demand for high-efficiency products while expanding its product portfolio to support long-term growth. It also plans to explore new opportunities in emerging sectors such as AI data centres by enhancing its commercial HVAC and industrial chiller capabilities – including systems for power generation – and scaling up its liquid-cooling solutions business.
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