Archive · 9 Jan 2026
LG Reports Q4 Losses Amid US Challenges
Two big companies from South Korea, LG Electronics and LG Energy, recently announced they lost money in the last three months of 2025.
This was unexpected because experts thought they would make a profit.
The main reasons are that fewer people are buying electric cars, especially in the US, where the government has changed some rules that helped electric car sales.
This has also affected other big companies.
LG Electronics lost money because of US tariffs and fewer people buying their display products.
LG Energy is trying to focus more on making batteries for storing energy, not just for cars, and they want to use more artificial intelligence to improve their products.
Their stocks have been going down, but they are trying to find new ways to grow.
LG Electronics reported an operating loss of 109.4 billion won in Q4 2025, missing profit estimates.
LG Energy reported a surprise operating loss of 122 billion won in Q4 2025, missing analyst profit estimates.
Revenue for LG Electronics increased 4.8% to 23.85 trillion won, while LG Energy's revenue fell 4.8% to 6.14 trillion won.
US policy changes, including the removal of EV tax credits, significantly impacted both companies' performance.
Both companies are shifting focus to new areas like energy storage systems (ESS) and AI integration to improve productivity.
- Who
- LG Electronics and LG Energy Solution, South Korean companies
- What
- Reported operating losses in Q4 2025 due to US policy changes and cooling EV demand
- When
- Three months ended December 31, 2025
- Where
- Global, with significant impact in the US
- Why
- Decline in EV demand, US tariffs, and increased competition
- Company
- LG Electronics and LG Energy Solution
- LG Electronics Operating Loss
- 109.4 billion won (US$75.2 million)
- LG Electronics Revenue
- 23.85 trillion won (4.8% increase)
- LG Energy Operating Loss
- 122 billion won (US$83.8 million)
- LG Energy Revenue
- 6.14 trillion won (4.8% decrease)
- US Tax Credits Impact
- 454.8 billion won loss without credits
- Stock Performance
- 20% decline in past month (LG Energy)
- Key Markets
- US, Europe, China
- CEO
- Kim Dong Myung (LG Energy)
- Future Focus
- Energy Storage Systems (ESS) and AI integration (LG Energy)