LEGO revenue and profits continue to rise
Posted by CapnRex101,
LEGO has announced its annual results for 2025, with the company achieving record revenue and profit, once again. The press release follows:
Highlights vs. FY 2024
- Revenue increased 12% to DKK 83.5 billion, driven by strong brand equity and demand for innovative LEGO play experiences.
- Consumer sales grew 16% as more children than ever received a LEGO product.
- Gained market share, growing more than twice as fast as the toy market.
- Operating profit grew 18% to DKK 22.0 billion due to record top-line, production scale efficiencies and productivity gains while strategic spending continued. Net profit grew 21% to DKK 16.7 billion.
- Free cash flow was DKK 10.8 billion, supported by high operating profit while sustaining substantial investments in new factories, existing facilities and sustainability initiatives.
- Significant increase in the estimated average of renewable and recycled content in the materials purchased to make LEGO bricks to 52%, up from 33% in 2024.
- Most popular themes include LEGO City, LEGO Technic, LEGO Star Wars, LEGO Icons and LEGO Botanicals.
The LEGO Group today reported earnings for the full year of 2025, achieving double-digit growth in revenue and operating profit. Demand for LEGO products was high in all market groups and among both children and adults, driven by strong brand equity, innovative new products, strategic partnerships and excellent retail execution. As a result, the LEGO Group significantly outperformed the growing toy market and increased its market share. The company continued a high level of investments on strategic initiatives and capacity expansions to support growth.
Niels B Christiansen, CEO, said: “We are very pleased with our record performance in 2025, building on last year’s success. Our innovative and extensive portfolio, combined with the strength of the LEGO brand and an effective operating model, drove high demand. We delivered these results by being both creative in product innovation and efficient in operations, bringing LEGO play experiences to more kids than ever before. As we continued to invest in future growth, we brought multi-year strategic investments to life and reached more than half renewable and recycled content in the materials we buy to make LEGO bricks.”
Revenue increased 12% to DKK 83.5 billion driven by sustained strong demand for the LEGO portfolio leading to growth in all market groups, especially in Western Europe, Americas and CEEMEA. Consumer sales increased by 16%, outpacing the toy market which grew 7%.
Operating profit grew by 18% to DKK 22.0 billion supported by high revenue and scale efficiencies. This was strengthened by ongoing productivity initiatives that enabled reinvestments in capacity expansions and strategic priorities to support short and long-term growth, like sustainability, supply chain network and digital technology. Net profit increased by 21% to DKK 16.7 billion, exceeding expectations.
Cash flow from operating activities increased by 4% to DKK 19.9 billion compared to DKK 19.2 billion in 2024 due to strong operating profit. The company maintained substantial investments of DKK 9.2 billion against DKK 9.0 billion in 2024, mainly in building new factories and expanding existing facilities. This resulted in free cash flow of DKK 10.8 billion against DKK 10.2 billion in 2024.
Innovative portfolio with strong appeal
2025 saw the LEGO Group launch its largest portfolio to date, featuring over 860 products, around half of which were new, with great appeal to builders of all ages. Among the most popular themes were LEGO City, LEGO Technic, LEGO Star Wars, LEGO Icons and LEGO Botanicals, which introduced builds that brought new, younger fans into LEGO play for the first time.
The partnership with Formula 1 attracted new builders as the first products came to market in 2025, supported by activations at more than twenty Grand Prix events. To connect with young racing fans, especially girls, the LEGO Group announced a new partnership with the F1 ACADEMY to bring LEGO Racing to the track in 2026.
The LEGO Group continued to inspire children’s creativity through both digital and physical play. As it celebrated the 30th anniversary of LEGO video games, the company launched new titles and physical sets based on favourite gaming franchises like LEGO Minecraft and LEGO Super Mario. It also evolved LEGO Fortnite Odyssey which reached over 1 billion player hours since launch.
Investing to support growth
- Expanding global footprint: In 2025, the company continued to strengthen its global supply chain to ensure it was resilient and able to manage growing complexity while continuing to meet demand. It opened a new factory and regional distribution centre in Vietnam, made progress on a factory and regional distribution centre in Virginia, U.S., and expanded existing factories in Hungary, Mexico and China. It also opened a new Americas head office in Boston, continued development on the new Copenhagen Hub, and announced plans to relocate the London Hub.
- Creating brand retail experiences: In both physical and digital retail channels, the LEGO Group further invested in engaging shopper experiences. Through close collaboration with retail partners, the company expanded availability of products and supported the growth of the brand. LEGO Branded Retail stores and LEGO.com welcomed a record number of visitors and achieved the highest satisfaction scores to date.
- Acquiring new locations: To offer fans of all ages even more memorable hands-on brand experiences, the LEGO Group announced plans to acquire LEGO Discovery Centres and LEGOLAND Discovery Centres from Merlin Entertainments. The acquisition was completed in February 2026 and includes 29 Centres located in nine countries, attracting around five million visitors a year.
Building a more sustainable future
In 2025, the LEGO Group increased its total sustainability investments by 20% compared to 2024 and over three times that of 2022. Among other initiatives, this enabled the company to make progress towards its aim of making LEGO bricks and packaging from more sustainable materials.
For the third year in a row, the LEGO Group substantially increased the amount of renewable and recycled content in the materials purchased to make LEGO bricks, reaching 52% from 33% in 2024. This was achieved due to large increases in purchases of certified mass balance and segregated materials. As a result, less virgin fossil-based materials were used to make LEGO bricks in 2025 than in 2022, even as revenue grew 29% in the same period.
Total greenhouse gas emissions were flat at 0.2% compared with last year. At the same time, the company continued to make progress on carbon intensity, denoting a fall in emissions relative to revenue. In its continued effort to reduce carbon emissions from global operations, the company significantly expanded solar energy coverage, invested in geothermal energy developments, and pursued renewable energy power purchase agreements.
Every year, the LEGO Group strives to reach more children with the benefits of play and support their well-being in a digital world. In 2025, it positively impacted more than 11.7 million children through global social responsibility initiatives.
Niels B Christiansen, CEO, said: “We are deeply committed to having a positive impact on the world and the communities we are part of. We do this by aiming to reduce our environmental footprint and improving access to play for kids who need it most, and we will continue to invest significantly to deliver on that ambition.”
It feels like I say this every year, but as fans, I think we want LEGO to be successful, affording the company more opportunities to attempt new things and create exciting and innovative sets, hopefully! However, it is sometimes slightly frustrating to read about record profits and complex development in certain areas of the company, while issues as basic as sticker colour matching remain.
What do you think of these results? Let us know in the comments.
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41 comments on this article
Hardly a shock there profits is so high with how comparatively high set prices have been the past year.
As you say, it would be more tolerable if issues like colour inconsistency weren't so persistent!
I'm not surprised given the amount of adults and children at LEGO shows. LEGO is incredibly popular. LEGO has done an excellent job at widening their consumer base and getting more people paying increased prices for the sets they like. I know there are longer term fans that buy less than they used to but these are massively outweighed by new LEGO fans. It would be interesting to see the growth of adults buying LEGO. They emphasise children but I imagine a lot of the growth is now fuelled by adults.
Time to make everything even more expensive.
I think I agree with your conclusion... Being very strict with things like sticker usage and parts budgets (that apparently don't hinder growth) is probably what brings in those massive profits.
I'm fairly sure if Lego had to choose between kids and adults they'd choose the latter, though.
Happy to see they are doing so good.
They must be doing a lot of things right, no matter the incessant complaining of a very small and way too vocal part of the fanbase.
And as long as they keep making awesome sets like the two massive licensed ones expected in spring (if you know, you know), I am a happy camper. No need for me to complain about F1 helmets and botanicals, because a) live and let live and b) each to their own.
My biggest issue is the pricing of sets. My son is 7 and their target demographic. He really wants 60505 Airplane, Service Truck & Hovercraft Remix, but $70 is pretty steep and it takes a kid a LONG time to save up that kind of money! Yeah, I know “everything is expensive these days”, but Lego has always had a reputation of being very expensive and they’re certainly not changing that now while talking about record profits.
Awesome! So the strategy to keep pumping up the prices, while lowering the quality of products works like a charm. I suggest even more new licenses to engulf every niche fanbase as well.
@PDelahanty said:
"My biggest issue is the pricing of sets. My son is 7 and their target demographic. He really wants 60505 Airplane, Service Truck & Hovercraft Remix, but $70 is pretty steep and it takes a kid a LONG time to save up that kind of money! Yeah, I know “everything is expensive these days”, but Lego has always had a reputation of being very expensive and they’re certainly not changing that now while talking about record profits."
That set has 990 pieces, when I was his age in 2003 a set of the same size (not part count, parts are smaller now) have cost about $60 or so, which in 2003 money is about $105. Lego is cheaper than its ever been, I wish a was a kid nowadays.
@R0Sch said:
"Awesome! So the strategy to keep pumping up the prices, while lowering the quality of products works like a charm. I suggest even more new licenses to engulf every niche fanbase as well."
Well this capitalism strategy can only go on for so long before your consumers move on due to too high price for poor quality product. Look at the state of the fast food industry (at least in NA).
@shaase said:
" @R0Sch said:
"Awesome! So the strategy to keep pumping up the prices, while lowering the quality of products works like a charm. I suggest even more new licenses to engulf every niche fanbase as well."
Well this capitalism strategy can only go on for so long before your consumers move on due to too high price for poor quality product. Look at the state of the fast food industry (at least in NA)."
It doesn't matter if some customers move on, so long as there is a new license bringing in new customers. Some LEGO sets seem expensive, but if that is the only LEGO you are buying that year then it is not so bad. That is the model they work on these days. 20 years ago, some people would buy most of the sets released or be "complete" in multiple themes. I think those days of people being a fan of the product (no matter what the theme) are disappearing and being replaced by fans of the license (or in the case of Modulars, Ninjago and Technic, the theme / product line).
@CCC said:
"I'm not surprised given the amount of adults and children at LEGO shows. LEGO is incredibly popular. LEGO has done an excellent job at widening their consumer base and getting more people paying increased prices for the sets they like. I know there are longer term fans that buy less than they used to but these are massively outweighed by new LEGO fans. It would be interesting to see the growth of adults buying LEGO. They emphasise children but I imagine a lot of the growth is now fuelled by adults."
Personally I just buy retired sets now. That way I can experience sets that were released before I was born like Space, Castle, Trains, Pirates and purchase sets from the Themes I grew up with like Bionicle. So I have no problem with LEGO not really catering to me since I would't be able to afford to buy sets released now as well as vintage sets. So LEGO putting out display pieces for new adult fans is cool with me.
Seeing Icons in the list of most popular themes makes me wonder: How much do licensed Icons sets sell compared to non-licensed Icons sets? Of course, there's more than one way to calculate that...
As much as aFols complain about price, people are buying and enjoying LEGO.
The Danish bro’s know what they’re doing.
Just don’t be a compleatist.
Buy what you truly enjoy and can afford.
Save for those bigger kits.
And best is to mod sets and make Mocs. Much more fun.
@PDelahanty said:
"My biggest issue is the pricing of sets. My son is 7 and their target demographic. He really wants 60505 Airplane, Service Truck & Hovercraft Remix, but $70 is pretty steep and it takes a kid a LONG time to save up that kind of money! Yeah, I know “everything is expensive these days”, but Lego has always had a reputation of being very expensive and they’re certainly not changing that now while talking about record profits."
Ignoring the price for a sec, that's honestly been one of my favourite sets of 2026 so far.
As someone who bought three new sets last week (The DeLorean, 2016 Batmobile, and 2022 Batmobile), one of them had awful gray sticker color matching, one of them had a scuffed windshield, and all of them used exclusively plastic bags. BUT! I am happy to see that LEGO’s profits grew 21%!
Just please do Avatar: The Last Airbender as the next unnecessarily $200+ niche mega set of the month ??(heaven forbid a $60 Appa, I know y’all would do the Day of Black Sun and the Fire Lord’s Palace)
@legoDad42 said:
"As much as aFols complain about price, people are buying and enjoying LEGO.
The Danish bro’s know what they’re doing.
Just don’t be a compleatist.
Buy what you truly enjoy and can afford.
Save for those bigger kits.
And best is to mod sets and make Mocs. Much more fun."
I totally agree that being a completist is something that really trips up a lot of AFOLS. How do they have enough space???
We all love Lego right, otherwise you would not be reading this. I would like to think we would also want all companies to do as much as they can to preserve the Earth, which I think Lego are trying to do. That said, I have seen increasing instruction errors, odd, high and increasing prices, new licence after new licence and poorly planned and managed release dates and website sales over recent times. As a customer it does sometimes feel like money rather than play is the main focus. And that does not fit the the Lego ethos, or mine.
"* Consumer sales grew 16% as more children than ever received a LEGO product.
* Gained market share, growing more than twice as fast as the toy market."
Everyone is entitled to their opinions and their criticisms.
But year after year, hard-core online AFOLs complain in comment sections about how stupid Lego is, and how they don't make anything for kids anymore. And year after year, the data proves them wrong.
Stop thinking that the opinions of comment-section AFOLs reflect the market as a whole. They don't even reflect the overall market for AFOLs. (And that's fine. Just buy what you personally like and what you can afford, just like everyone does for everything.)
Lego is a massive, successful company that does a tremendous amount of research on what kids want and what adults want, while online AFOLs just go by vibes in an echo chamber.
@BJNemeth said:
"* Consumer sales grew 16% as more children than ever received a LEGO product.
* Gained market share, growing more than twice as fast as the toy market.
Everyone is entitled to their opinions and their criticisms.
But year after year, hard-core online AFOLs complain in comment sections about how stupid Lego is, and how they don't make anything for kids anymore. And year after year, the data proves them wrong.
Stop thinking that the opinions of comment-section AFOLs reflect the market as a whole. They don't even reflect the overall market for AFOLs. (And that's fine. Just buy what you personally like and what you can afford, just like everyone does for everything.)
Lego is a massive, successful company that does a tremendous amount of research on what kids want and what adults want, while online AFOLs just go by vibes in an echo chamber."
I agree. LEGO is making and selling loads of sets for kids. I see this every time I go to a LEGO store, and usually when I go in a general toy store. I also see it from the amount of floor space taken up in department stores. There is a lot of product for adults, but the majority is still for kids.
As to opinions of comment-section AFOLs, there is another even bigger layer. AFOLS that comment online are a small group inside the larger group of AFOLS. But AFOLS are a small group inside the larger group of adults that buy LEGO. Many adults buy a few LEGO sets for themselves a year but don't necessarily call themselves a fan of LEGO. This is where LEGO has been clever. The adults buying LEGO are no longer just die-hard fans of the product, they are fans of whatever the set is. And when they vary the subject matter of those sets, they have a much bigger audience.
@BJNemeth said:
[[[[* Consumer sales grew 16% as more children than ever received a LEGO product.
* Gained market share, growing more than twice as fast as the toy market.]]
Everyone is entitled to their opinions and their criticisms.
But year after year, hard-core online AFOLs complain in comment sections about how stupid Lego is, and how they don't make anything for kids anymore. And year after year, the data proves them wrong.
Stop thinking that the opinions of comment-section AFOLs reflect the market as a whole. They don't even reflect the overall market for AFOLs. (And that's fine. Just buy what you personally like and what you can afford, just like everyone does for everything.)
Lego is a massive, successful company that does a tremendous amount of research on what kids want and what adults want, while online AFOLs just go by vibes in an echo chamber.]]
I mean, they could also just lie about how much of the profits are driven by kids. Tbh I’ve seen more adults buying Lego for themselves than for kids, even the ones who have kids. They’ll but an $30 set for their son and an $250 set for themself. Adults have money; they can afford a $1000 Death Star.
I don’t expect honesty from a private company. They can say whatever and we have no way of knowing what is true
No, we don't want Lego to be this successful. They can and have done anti-consumer things to the sets to increase profits. If Lego had actual competition, they wouldn't be getting away with it. For instance, many competitors only use prints. Lego doing stickers is not the norm in the building block market.
Mary Poppins: They must feel the thrill of totting up a balanced book
A thousand ciphers neatly in a row (George Banks: Quite right)
When gazing at a graph that shows the profits up
Their little cup of joy should overflow!
I want to see the number of sets sold. A couple years before the price hike, then the steady incline since. High profits are easy when you’re pricing out many of your loyal customers.
Surely this means that they will pay their retail employees more. Right?
As others have said, LEGO prices on many products have felt out of control recently, and quality control issues have slowly increased over time, from inconsistent brick colors, prints not opaque enough, crumpled sticker sheets, and simply LEGO no longer having the highest quality bricks in the game (see Lumibricks, etc). There will eventually come a point when a critical mass of fans become discouraged with any number of these things, and I hope LEGO addresses them (starting without out of control pricing) before that happens.
@legoDad42 said:
"As much as aFols complain about price, people are buying and enjoying LEGO.
The Danish bro’s know what they’re doing.
Just don’t be a compleatist.
Buy what you truly enjoy and can afford.
Save for those bigger kits.
And best is to mod sets and make Mocs. Much more fun."
You realize that what you find the most fun is not necessarily what other people will find the most fun, right? But I do agree with your second point. Even if I had unlimited money and space, I don't know of any themes I'd try to complete, although there are some subthemes I'd definitely have a go at.
Whew, I'm just glad their billions of dollars in profit kept increasing. Thank goodness.
(Yes, I understand businesses need to make a profit and grow/expand their portfolio including taking chances on certain IP or projects).
Prices climb, profits climb, am I as satisfied with LEGO as I get older, no. But that's life. I still buy it, just more selective now.
Can't dictate what others should do, as it's all subjective, but since their AFOL oriented sets went up in price and [what I find to be] down in quality and a bit predictable in what they are - I'm happy that it's the fourth revenue report I hardly contributed to. My stance is still the same, I like the product but less so of the company. Used my bricks budget for Lumibricks in 2025, which are punching way above their weight, and I recommended people to try them out.
That said, I'm glad that TLG are still rocking it - it's impressive that they keep standing tall with how the world is these last few years, and happy that they released more trains this past year.
@ShinyBidoof said:
" @MDC427 said:
"Surely this means that they will pay their retail employees more. Right?"
Do Lego pay significantly less than other retail companies?"
LEGO pays it's retail employees quite well, depending on the region. In the Pacific Northwest, Brick Specialists, the associate level, make about the same as an assistant manager in most other equivalent retail stores.
I'm not going to clap at LEGO announcing record profits again. I like LEGO: that doesn't mean I have to cheerlead them.
LEGO continually positioning itself as an aspirational product (Backed up by legions of influencers with LEGO-filled basements) is working for now, sure. 2025 is also a year where the likes of Lumibricks has been making waves, proving that there really is no need for the prices we've got used to. Profits never climb forever
I wonder who is actually buying all these sets.
From personal experience I know if lots of toy stores that have even stopped selling LEGO altogether because people wouldn't buy sets anymore due to the exorbitant prices and customers expecting massive discounts that are not sustainable for the shop.
Amazon and other gigantic retailers don't have that problem because they can offset the losses they incur with LEGO by selling loads of other stuff with far better margins, but small local stores often can't do that.
And I know plenty of parents who have switched to other toys because they simply can't afford to buy their kids LEGO anymore.
Otoh on a personal level I am happy for TLG that they are doing so well, because in the end it means that for every thousand sets I would consider crap they produce one absolute highlight that maybe otherwise would never have seen the light of day.
So keep on rocking, just don't expect a lot of revenue from me.
@AustinPowers said:
"I wonder who is actually buying all these sets.
From personal experience I know if lots of toy stores that have even stopped selling LEGO altogether because people wouldn't buy sets anymore due to the exorbitant prices and customers expecting massive discounts that are not sustainable for the shop.
Amazon and other gigantic retailers don't have that problem because they can offset the losses they incur with LEGO by selling loads of other stuff with far better margins, but small local stores often can't do that.
And I know plenty of parents who have switched to other toys because they simply can't afford to buy their kids LEGO anymore.
Otoh on a personal level I am happy for TLG that they are doing so well, because in the end it means that for every thousand sets I would consider crap they produce one absolute highlight that maybe otherwise would never have seen the light of day.
So keep on rocking, just don't expect a lot of revenue from me. "
I suspect scalpers and resellers have a bigger impact that LEGO are willing to admit. Reports like this are also PR, after all
Great, let's move the manufacturing back to Western countries. Surely we don't need to make components in China for Western markets with these profits!
LEGO is still a private company and not listed on the stock market, which makes me curious about the purpose of publishing such detailed financial highlights each year. Is this mainly about transparency and brand confidence, or about maintaining relationships with banks and partners?
From a fan perspective, the financial growth is impressive, but it does raise questions about pricing and quality control. Some recent sets feel noticeably smaller or more expensive than previous equivalents, which can give the impression of shrinkflation. For example, the 2025 Clone Turbo Tank is £139 for 813 pieces, which feels difficult to justify in terms of value https://www.lego.com/en-gb/product/republic-juggernaut-75413 . The only truely new piece was Commander Bacara's helmet, the galatic marines are bascially snow troopers.
I’ve also personally experienced quality control issues within the last couple of months. A P1 Clone Pilot helmet I bought would not physically fit onto the minifigure head correctly, and I had to request a replacement part.
I’m still a fan of LEGO overall, but it would be great to see the company balance strong financial performance with continued attention to quality and value for builders.
Another factor that may contribute to LEGO’s strong financial performance is its global retail presence. LEGO has a major advantage through its network of brick-and-mortar branded stores worldwide and its direct online shop, alongside distribution through major retailers. That level of visibility and accessibility is something most competing brick brands simply cannot match, which likely strengthens LEGO’s position in the market, thus allows them to put prices up becuase they have no competiion but themselves.
If another company took a large chunk of buyers (millions of fans) away from LEGO, they would likely have to reduce costs, but at the moment there is no other player operating at that scale.
@PDelahanty said:
"My biggest issue is the pricing of sets. My son is 7 and their target demographic. He really wants 60505 Airplane, Service Truck & Hovercraft Remix, but $70 is pretty steep and it takes a kid a LONG time to save up that kind of money! Yeah, I know “everything is expensive these days”, but Lego has always had a reputation of being very expensive and they’re certainly not changing that now while talking about record profits."
Your son really only needs one healthy kidney.
How is it that I am not surprised? Even in this quite depressing times. Or even it is thanks to these depressing times?
Considering their gross margin is at its lowest in the past five years, the higher prices we've been seeing recently seem to be reflective of greater market trends (i.e. tariffs) and LEGO passing on those costs to customers. Their production costs and sales/distribution expenses rose more than their sale of goods, percentagewise, so hard to tell if they've made any cuts to quality control or research and development for new sets. I did notice significant purchases of PPE, so that could be scaling up production, new molds, or new products like Smart Bricks.
Profits that are the result of higher prices AND a reduction in expenses thanks to the continuing reduction of product quality.
Of course The LEGO Group tries to spin it as if it's the results of "innovation" and "consumer satisfaction" but that's not the reality their own numbers paint.
@MrBedhead said:
"Happy to see they are doing so good.
They must be doing a lot of things right, no matter the incessant complaining of a very small and way too vocal part of the fanbase.
And as long as they keep making awesome sets like the two massive licensed ones expected in spring (if you know, you know), I am a happy camper. No need for me to complain about F1 helmets and botanicals, because a) live and let live and b) each to their own."
There is a need to incessantly complain about people who incessantly complain about incessant complainers.
It's interesting that LEGO, a company that is privately owned, is more transparent with their finances than many politicians.
But yes, echoing similar comment about color/part quality dropping, too many "adult" dust collector sets, and their support of groups with questionable ethics (FIFA, etc) via partnerships.
They didn't get there from me. I've been trending down over the last 5 years. I went from spending $1349 in 2021 to $287 last year. So far this year Im at $32 (retail value, but I only buy on clearance now).