LG Electronics, which posted an operating loss of 109.0 billion won in the fourth quarter last year and recorded a "quarterly loss for the first time in nine years," is expected to stage a rebound this year. Analysts say annual operating profit will increase by around 1 trillion won from a year earlier, driven by improvements in the TV institutional sector after three straight quarters of losses and the expansion of business-to-business (B2B) operations centered on heating, ventilation and air conditioning (HVAC). Its focus on the "physical AI" space is cited as a factor that will drive mid- to long-term growth. The leadership of LG Electronics President Lyu Jae-cheol, who took the helm late last year, is also receiving positive reviews.
On the 15th, according to the consensus (average of brokerage forecasts) compiled by financial information provider FnGuide, LG Electronics' full-year results are projected at 92.1822 trillion won in revenue and 3.4555 trillion won in operating profit. Brokerages analyze that, compared to last year, revenue could rise 3.3% and operating profit 39.4%.
LG Electronics is expected to post a notable improvement starting in the first quarter. The first-quarter consensus for LG Electronics stands at 23.2822 trillion won in revenue and 1.3755 trillion won in operating profit. That represents increases of 2.4% in revenue and 9.2% in operating profit from a year earlier. Compared with the previous quarter, revenue is expected to dip slightly, but with operating profit seen in the "trillion-won range," a turnaround within just one quarter appears likely.
◇ TV business stuck in a "loss swamp" aims for a "return to profit" this year
Brokerages cited ▲ improved profitability in the TV institutional sector ▲ expansion of B2B operations as reasons for LG Electronics' better results this year. As the TV business improves, the company is expected to reduce losses and respond to rising demand driven by the expansion of artificial intelligence (AI) data centers, centered on HVAC.
The Media & Entertainment Solutions (MS) division, which handles businesses such as TVs and laptops at LG Electronics, recorded consecutive losses from the second to the fourth quarter last year. Full-year operating losses reached 750.9 billion won. However, analysts say profitability will improve this year as the company secures cost competitiveness and sees results from operational efficiency strategies. As TV component prices rose amid U.S.-driven tariff measures and a memory semiconductor shortage, LG Electronics has been responding by focusing on diversifying its supply base.
Another positive factor is that a series of global sporting events this year could boost TV demand. Starting with the Winter Olympics in February, the World Baseball Classic (March), the North and Central America World Cup (June), and the Aichi-Nagoya Asian Games (September) will be held. As a result, the market for premium organic light-emitting diode (OLED) TVs is expected to gain momentum.
According to market research firm Omdia, LG Electronics has held the No. 1 market share in OLED TVs for 13 straight years. Last year as well, it posted a 49.7% share by shipment volume. While global TV shipments totaled about 208.58 million units last year, down 1% from a year earlier, OLED TV shipments rose 6% to 6.47 million units. This trend is expected to continue this year.
LG Electronics is reportedly set to launch an affordable TV in Korea this year equipped with the "OLED Special Edition (SE)" panel developed by LG Display. The securities industry expects performance in the LG Electronics TV business to improve led by OLED, with projections that the MS division could cut its loss by more than half this year from last year. Some brokerages even say operating profit of 30.0 billion to 90.0 billion won is possible this year.
◇ Zeroing in on the AI data center market with "cooling" solutions
The Eco Solutions (ES) division, which oversees LG Electronics' HVAC business, is also expected to expand its scope. Market demand is surging for chillers (cooling units that lower the temperature of facilities or spaces) used in AI data centers and for coolant distribution units (CDUs), which are essential for server liquid cooling. Orders for data center chillers last year increased to about three times the prior year's level, and the results are set to be reflected in earnings in earnest starting this year.
In LG Electronics' core home appliance business, the spread of the "subscription model" in the short term and "humanoid robots" in the mid- to long-term are cited as drivers of earnings growth. The company also more than quadrupled its specialized sales force, "LG Pro Builder," from 2023 levels to expand the "construction company built-in" segment that supplies appliances to B2B.
Park Kang-ho, an analyst at Daishin Securities, said, "The Home Appliance & Air Solution (HS) division, which oversees the home appliance business, is expected this year to actively adopt AI features, expand subscription appliances, and grow sales centered on premium models," adding, "This will be linked to higher average selling prices and play a pivotal role in companywide profit growth." He also noted, "We are expanding new growth platforms such as Robotics, which will generate synergies across appliances, TVs, vehicle components, and HVAC." LG Electronics unveiled its home robot "LG Clloid" at the Consumer Electronics Show (CES) 2026 held in January. Clloid, which has five fingers, is a Humanoid Robot designed to ease users' housework burden.
As expectations grow that LG Electronics will deliver earnings growth, positive assessments are also emerging for President Lyu, who began full-fledged management this year. Upon taking office as chief executive officer (CEO), Lyu presented five core tasks: ▲ strengthening competitiveness in core businesses ▲ accelerating qualitative growth ▲ improving the soundness of the regional portfolio ▲ identifying new growth opportunities ▲ changing the way the company works. An industry official said, "Lyu frequently checks on-the-ground changes to ensure the management vision he presented does not end up as a goal in words only," adding, "Internal reviews say it is having a positive effect on profitability improvement."