LG Electronics reports 109.4 billion won quarterly loss, a nine-year record

SellTheBounce · 2026-03-02T13:00:53+00:00

LG Electronics reported a 109.4 billion KRW operating loss in Q4 2024, marking its first quarterly loss. Weak market demand and cost pressures led to a decline in performance, and the company expects revenue to decrease by 28% in 2025. The stock price also came under pressure due to poor financial performance, damaging investor confidence.

SellTheBounce

2026-03-02 13:00:53

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South Korean consumer electronics giant LG Electronics is facing difficulties. According to its preliminary financial report released in early January, the company recorded an operating loss of 109.4 billion won in Q4 2024, approximately $75.3 million. This is the first quarterly loss since Q4 2016 and marks a nine-year low. In contrast, the same period last year, the company posted a profit of 135.4 billion won.

Market Weakness and Cost Pressures Double Hit

The decline in LG Electronics’ performance is driven by multiple factors. In fierce market competition, demand for home appliances, TVs, and other consumer electronics has been sluggish, with consumers hesitant to purchase. At the same time, the company faces rising tariffs and increased internal restructuring costs, which further squeeze profit margins and pose unprecedented challenges to operations.

Full-Year Outlook Downgraded, Operating Profit Under Pressure

The quarterly loss reflects the tough overall business environment for LG Electronics. The company expects its full-year operating profit in 2025 to decline by 28%, reaching 2.478 trillion won. This significant forecast drop indicates that short-term pressures may persist, requiring structural adjustments and business optimization to reverse the trend.

Stock Price Decline and Market Confidence Test

Affected by poor financial performance, LG Electronics’ stock price has come under pressure. Data shows its stock has fallen about 4% since early 2025, reflecting cautious investor sentiment about the company’s near-term prospects. The company plans to release its full quarterly earnings details later this month, which will provide more information to the market.

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