1. LG Q2 Earnings: The Earnings Shock Revealed

LG reported Q2 2025 revenue of ₩17.977 trillion and operating profit of ₩2.769 trillion, significantly below market consensus. Revenue declined by 10%, and operating profit plummeted by a staggering 36%.

2. Analyzing the Underperformance: Why the Earnings Shock?

  • Subsidiary Underperformance: LG Electronics was impacted by slowing global consumption and intensified competition, while LG Chem suffered from a weak petrochemical business.
  • Worsening Macroeconomic Environment: Rising raw material prices and a global economic slowdown negatively impacted LG’s profitability.

3. LG Stock Outlook and Investment Strategies: What’s Next?

Downward pressure on the stock price is inevitable in the short term. However, the mid-to-long-term outlook will depend on the subsidiaries’ performance improvement and the success of new business investments.

  • Investment Strategy:** Short-term investors should remain cautious, while long-term investors should carefully analyze LG’s fundamentals and growth potential before making investment decisions. Monitoring the turnaround strategies of subsidiaries and the performance of new business investments is crucial.

4. Investment Considerations

Before making investment decisions, investors should consider the potential for continued underperformance, further deterioration in subsidiary performance, disappointing results from new business investments, and macroeconomic uncertainties.