LG Electronics said on Friday it posted 2025 fourth-quarter revenue of 23.9 trillion won and an operating loss of 109.4 billion won. It attributed the operating loss to weak demand for display products and higher marketing costs. It also recognised non-recurring costs from voluntary retirements in the second half.

Full-year results were provisionally tallied at revenue of 89.2 trillion won and operating profit of 2.48 trillion won. Revenue rose 1.7 percent from a year earlier. Operating profit fell 27.5 percent.

Over the past five years, consolidated revenue has posted a compound annual growth rate of about 9 percent. The company said revenue kept growing for a second straight year despite a prolonged slowdown in global demand.

The drop in operating profit was driven largely by a delayed recovery in demand for display products. Increased marketing spending amid intensifying competition also weighed on profitability. The cost of voluntary retirements is expected to help ease fixed-cost burdens over the medium to long term.

Even so, B2B areas such as vehicle components and heating, ventilation and air conditioning, along with non-hardware businesses such as webOS and maintenance and D2C areas such as home appliance subscriptions and online, accounted for nearly half of overall business performance. LG Electronics plans to focus on these areas of qualitative growth and build a growth structure based on profitability.

The home appliance business is expected to achieve record-high revenue. It maintained leadership in the premium market. It also delivered stable performance in the volume zone. Growth in the subscription business combining products and services contributed to strong results.

This year, it plans to invest heavily in B2B areas such as built-in appliances and its parts-solutions business including motors and compressors. It aims to create growth momentum.

The display product-based business is expected to swing to an annual loss. That reflects weak demand and increased marketing spending due to intensified competition. By contrast, the webOS platform business, based on an installed base of 260 million devices worldwide, is growing by at least double digits and is progressing smoothly.

The vehicle components business is expected to achieve record-high revenue and operating profit. A premium trend in in-vehicle infotainment continued. Higher sales of high value-added products and efforts to improve operating efficiency are expected to lift profitability. This year, it will also accelerate efforts to lead capabilities beyond SDVs, or software-defined vehicles, to AIDVs, or AI-defined vehicles.

The heating, ventilation and air conditioning business is expanding its portfolio from households to commercial and industrial customers. It is growing into a core B2B business as maintenance expands and its global production network continues to broaden. The company said it will also continue efforts to secure future business opportunities in AI data center cooling solutions by leveraging comprehensive cooling technology spanning air cooling to liquid cooling.

LG Electronics plans to announce final results, including net profit and management performance by business division, through an earnings briefing scheduled for later this month.