LG Electronics announced on Friday a net loss for the fourth quarter of 2025, attributing the result to weak market demand and one-time costs associated with a restructuring plan.

The company reported a net loss of 725.9 billion won (approximately $505.7 million) for the quarter, according to a regulatory filing, compared to a loss of 713.7 billion won in the same period a year earlier.

LG Electronics posted an operating loss of 109 billion won for the fourth quarter, a significant downturn from the 135.4 billion won operating profit recorded in the fourth quarter of 2024. Quarterly revenue, however, increased by 4.8 percent year-on-year to 23.85 trillion won.

The company blamed the weak performance on a delayed recovery in television product demand and increased marketing expenditures.

"In the second half, the company implemented a voluntary retirement program to enhance the efficiency of our employee structure, which resulted in expenses amounting to hundreds of billions of won," the company stated.

For the full year 2025, LG Electronics reported a net profit of 1.22 trillion won, more than doubling the previous year's figure.

Annual operating profit stood at 2.47 trillion won, a 27.5 percent decrease from the 3.41 trillion won recorded in 2024. Full-year revenue saw a modest increase of 1.7 percent, reaching 89.2 trillion won.

LG Electronics indicated that despite an unfavorable environment, including tariff burdens, its home appliance business drove the company's annual revenue to a new record.

Specifically, the company's Home Appliance & Air Solution (H&A) division achieved an operating profit of 1.27 trillion won, which it attributed to optimized production cost structures.

The Vehicle component Solutions (VS) division is expected to post an operating loss of 750.9 billion won for 2025, impacted by intensifying market competition.

Conversely, the Vehicle component Solutions (VS) division secured an operating profit of 559 billion won, as the company focuses on establishing a leading position in the software and AI-defined vehicle industry.

LG Electronics stated that for 2026, it plans to expand its lineup of AI-powered home appliances and prepare for future growth engines, including home robotics products.

The company also aims to boost sales of its organic light-emitting diode (OLED) televisions and other products, such as the LG StanbyME portable TV.