LG Electronics’ home appliance business kept quarterly revenue above 7 trillion won in the third quarter, but operating profit fell sharply from the prior quarter as the company warned that a broad demand recovery is likely to remain limited through the end of 2026.
LG’s Home Appliance Solution business reported KRW 7.04 trillion in third-quarter revenue and KRW 259.2 billion in operating profit, according to the company’s Oct. 28 financial results.
The profit figure is notably lower than the KRW 685.9 billion LG reported for the home appliance business in the second quarter. Quarter-to-quarter comparisons can be affected by seasonality and one-time costs, but the drop shows how much harder the earnings environment became even as appliance revenue remained substantial.
Appliance Revenue Holds Up Better Than Profit
LG has been using a mix of premium products, volume models, business-to-business sales and direct online channels to protect growth in a weak consumer market. The company said it expects demand recovery to remain limited in the fourth quarter.
That caution follows a second quarter in which LG’s home appliance sales also topped KRW 7 trillion while profit surged. Appliance News reported in August that the company was leaning on subscriptions and new business models as traditional appliance demand softened.
For retailers, the Q3 result points to a familiar problem: revenue can remain resilient while promotions, tariffs, logistics and product mix put pressure on profit. LG’s results arrive in the same week that Whirlpool reported weaker North American demand and Electrolux said shoppers were shifting toward lower price points.
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Subscriptions Reach KRW 760 Billion
LG’s subscription business, which combines product access with recurring services such as maintenance, generated KRW 760 billion in revenue, up 8.6% from a year earlier, the company said.
That growth matters because subscription revenue behaves differently from a one-time appliance sale. It can create a longer customer relationship and recurring service work, giving a manufacturer another source of revenue when replacement cycles stretch.
It also raises a longer-term service question. A manufacturer that bundles maintenance into a subscription can control more of the post-sale relationship, including when service is scheduled and how customers move into replacement products. LG has not announced a broad U.S. rollout matching the scale of its subscription model in South Korea, so the U.S. implications remain a strategy to watch rather than an established market shift.
LG Will Keep Pushing B2B, Online Sales and Recurring Revenue
LG said it plans to continue expanding subscriptions, business-to-business sales and direct-to-consumer online channels in the fourth quarter. Those businesses are intended to reduce the company’s dependence on conventional one-time consumer hardware sales.
The strategy does not eliminate exposure to a weak appliance market. Refrigerators, washers, dryers and other major appliances still depend heavily on housing activity and replacement demand. But recurring revenue can soften the impact when consumers postpone large purchases.
Three Manufacturers, One Cautious Demand Signal
LG’s outlook adds another data point to a cautious week for appliance manufacturers. Whirlpool said U.S. industry demand fell in the third quarter and announced a 7% price increase. Electrolux reduced its outlook for volume, price and mix after North American consumers moved toward cheaper products.
LG’s response is to keep building businesses that can grow without relying solely on more appliance units. The fourth quarter will show whether subscriptions and channel expansion can keep revenue steady while the core replacement market remains subdued.
