LG Electronics has reported a $750.8 million loss in its consumer electronics business, as falling global television demand and intensifying competition in the OLED TV market delivered a major blow to the South Korean company’s profitability.

LG Group  reported the shocker profit fall late on Friday afternoon, ,with the consumer-electronics companies TV business—once among the market leaders—now facing a notable decline with no indication that they are able to turn there problems around.

Costly restructuring efforts, including an early retirement program for employees, also weighed on the bottom line.

The Company posted a net loss of $755 million, in the fourth quarter, which is worse than the loss analysts expected, this was despite revenue rising 4.8% due mainly from the B2b and EV and commercial air con business.

On an earnings call, LG management said that sporting events such as the Winter Olympics and the World Cup could support demand in 2026 with several analysts claiming that Hisense, Samsung and TCL will benefit ahead of LG Electronics due to their TV pricing strategies.

However, macroeconomic uncertainty, semiconductor shortages and higher component costs are expected to cap growth and leave demand marginally higher or flat from the previous year, they said.

The company said weaker TV sales and aggressive competition eroded margins across its consumer division, despite a significant increase in marketing expenditure. That spending failed to arrest declining demand, raising questions about the effectiveness of LG’s strategy in a market increasingly dominated by lower-priced rivals and alternative display technologies.

New competitive threats are also emerging, with RGB LED panels expected to further pressure LG’s OLED TV business, which has been a cornerstone of its premium TV strategy.

LG has characterised the slump in OLED TV sales as a result of “delayed demand recovery” and intensifying competition. However, the downturn comes as overall operating profit at LG Electronics declined year-on-year, while profits at key competitors surged over the same period.

Appliances Deliver Profits, EV Pivot Creates New Risks

In contrast, LG’s home appliance division delivered strong results, recording profits of A$1.28 billion and achieving record-high revenue over the past year, according to the company’s latest financial statements.

That performance, however, is now clouded by fresh uncertainty. LG’s decision to pivot toward the electric vehicle components market — seen internally as a growth engine to offset weakening consumer demand — is now under pressure as global EV demand slows sharply. The downturn is creating challenges for LG’s manufacturing operations that supply EV components, undermining expectations of a smooth transition away from traditional consumer electronics.

Job Cuts Add $500M in One-Off Costs

As profits weakened, and despite increased overall revenues LG moved aggressively to cut costs, slashing headcount both domestically and internationally.

The restructuring resulted in more than $500 million in one-off costs, which the company described as part of an “organizational optimization” program.

LG said the layoffs were “measures that are expected to contribute to a more flexible cost structure over the mid- to long term,” but the charges further weighed on profitability during the reporting period.

Data Revenue Not Disclosed as Advertising Push Expands

LG also declined to disclose revenues generated from the collection and sale of consumer data, despite the business becoming an increasingly central part of its strategy.

Consumer data is collected through LG’s constantly updated webOS software, which is installed on all LG smart TVs. The platform captures viewing behaviour and online activity, with data sold to third parties. At the same time, LG has expanded advertising across its TV range, with ad inventory sold through LG subsidiaries.

The company claims the data-driven advertising model will support “solid growth” through increased content investment and expanded partnerships. However, the absence of financial disclosure around data monetisation raises transparency concerns.

Media and Entertainment Unit Faces Intensifying Pressure

 

LG’s Media Entertainment Solution (MS) division continues to face headwinds, reporting a year-on-year decline in TV performance amid what the company described as “intensified competition in the global display market.”

In 2026, LG plans to expand into the RGB LCD TV market, despite the fact that many LG-branded TVs are now manufactured by arch-rival TCL. Industry analysts warn the move could expose LG to further pricing pressure and margin compression.

Strategic Shift Away from Consumers

LG management has increasingly signalled a move away from consumer electronics, citing near-term uncertainty in global automotive demand due to macroeconomic volatility. The company, which has positioned EV components as a replacement growth engine for consumer sales, is now focused on improving operational efficiency after profitability rose only marginally in 2025.

Looking ahead to 2026, LG said it expects growth in demand for high-efficiency solutions, including heat pumps using environmentally friendly refrigerants, particularly in overseas markets where data centres are being built.

The company also plans to expand its AI-powered appliance lineup, alongside new AI Home platforms, component solutions and home robotics — with data generated by connected appliances expected to be commercialised and sold to third parties as part of LG’s evolving portfolio strategy.

Across town in Seoul Samsung executives are celebrating after the South Korean giant delivered a record Q4 2025 operating profit of A$22.1 billion on revenues of A$103 billion, achieved despite declining global TV and smartphone sales.