LG Electronics (066570) Q3 2026 earnings summary

Executive summary

• Q3 revenue was KRW 23,824.1bn, up 8.9% YoY; operating income was KRW 781.9bn, up KRW 93.0bn YoY, with a 3.3% margin.

• Net income was KRW 708.4bn; home appliances and automotive electronics maintained profitability, TV improved significantly YoY, and automotive electronics sustained mid-single-digit-or-higher profitability for seven consecutive quarters.

• B2B and subscription sales grew YoY; AIDC cooling orders exceeded KRW 3tn by Q3.

Financial highlights

• Revenue was KRW 23,824.1bn, up 8.9% YoY; operating income was KRW 781.9bn, up KRW 93.0bn YoY and down KRW 797.2bn QoQ.

• Net income was KRW 708.4bn, versus KRW 461.0bn in Q3 2025; income from continuing operations was KRW 708.4bn.

• Operating cash flow was KRW 620.5bn; investing cash flow was negative KRW 986.9bn. Cash and cash equivalents ended the quarter at KRW 8.26tn.

• HS sales were KRW 7,044.4bn with operating income of KRW 259.2bn; MS sales were KRW 5,021.5bn with operating income of KRW 146.7bn.

• VS sales were KRW 2,826.1bn with operating income of KRW 190.3bn; ES sales were KRW 2,173.6bn with operating income of KRW 87.2bn.

Outlook and guidance

• Q4 uncertainty includes interest rates, raw-material prices, FX volatility, geopolitical risks and diverging regional demand.

• HS expects limited global appliance demand recovery; priorities include localization, regionally tailored Global South products, and subscription, B2B and online growth.

• MS expects Q4 TV demand to decline YoY amid weak consumer sentiment and higher memory and LCD panel costs; cost competitiveness and efficiency remain priorities.

• VS expects limited automotive demand recovery amid weak EV demand, while seeking backlog-driven sales growth and protecting profitability through cost and efficiency measures.

• ES plans to grow overseas HVAC and AI data-center cooling; broader priorities include B2B expansion, Global South growth, production efficiency and supply-chain diversification.