By Kwanwoo Jun


LG Electronics reported a net profit in the first quarter after falling into the red in the previous quarter, signaling resilient growth despite headwinds from tariffs and Middle East tensions.

The swift turnaround raises hopes of an earnings recovery this year for the South Korean consumer-electronics giant, which has streamlined its television business while increasing local production in the U.S. and Mexico to mitigate the impact of tariffs.

The company is also stepping up its push into new growth businesses, including home-appliance subscription services and artificial-intelligence data-center cooling systems.

Expectations of a strong 2026 earnings rebound have already buoyed investor sentiment, sending shares in the Seoul-listed company roughly 50% higher this year through Wednesday.

LG said net profit rose 15% from a year earlier to 1.005 trillion won, equivalent to $682.4 million for the three months through March. That followed a fourth-quarter net loss of 725.90 billion won, its first quarterly loss in a year.

Analysts had expected net profit of 992.00 billion won for the latest quarter, according to a FactSet consensus.

Revenue rose 4.3% from a year earlier to 23.727 trillion won, while operating profit came in at 1.674 trillion won. Both figures were largely in line with the company's preliminary estimates.

The company said its media-entertainment business, which includes TVs, posted an operating profit of 371.80 billion won after several quarters of losses. Its home-appliance segment posted an operating profit of 569.70 billion won in the quarter, following a revised loss in the prior quarter.

The turnaround was supported in part by appliance subscriptions and web-based platform services. LG said the solid performance was also driven by its strong premium product sales and ongoing efforts to reduce marketing and fixed costs, despite challenges from tariffs and the Middle East conflict.

LG said it continues to seek new business opportunities in heat pumps and AI data-center cooling, even as its heating, ventilation and air-conditioning segment faces uncertain market conditions, including geopolitical risks stemming from the Middle East conflict.

Earlier this year, Moody's upgraded LG's credit rating to Baa1 from Baa2, citing lower debt, an expected earnings recovery and investment in new businesses.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

04-29-26 0219ET