By Kwanwoo Jun
LG Electronics fell into the red after three profitable quarters, ending 2025 on a weak note amid sluggish demand recovery and rising business costs.
The consumer-electronics giant's television business--once among the market leaders--has suffered a notable decline, grappling with a range of challenges, from weak demand and intense competition to higher marketing and labor costs.
Costly restructuring efforts, including an early retirement program for employees, also weighed on the South Korean company's earnings.
The company on Friday posted a net loss of 725.90 billion won, equivalent to $507.0 million, in the fourth quarter, worse than the 503.50 billion won loss analysts expected in a FactSet consensus.
The net loss was its first since the final quarter of 2024. LG Electronics had earlier guided for its first operating loss in nine years despite higher revenue for the fourth quarter.
Revenue rose 4.8% from a year earlier to 23.852 trillion won, and operating loss was 109.00 billion won, both largely in line with its preliminary estimates.
The company's media entertainment solution division, which includes TVs and displays, posted an annual operating loss of 750.90 billion won, while its home-appliance, auto-component and business-to-business units remained profitable.
For the full year, net profit doubled to 1.220 trillion won following a plunge in 2024. Revenue increased 1.7% to 89.201 trillion won, with operating profit down 28% at 2.478 trillion won.
Shares in LG Electronics ended 1.8% lower Friday ahead of the results. The stock has risen 7.8% this year, underperforming the benchmark Kospi's 24% gain.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
01-30-26 0239ET
