Lego hits record revenue in first half of 2025, boosted by brick flowers and cars

Lego reported a record first half, with revenue surging 12% to $5.4 billion and operating profit rising 10% to $1.4 billion. This robust performance was driven by a record 314 new product launches, including successful diversification into adult-oriented sets like botanicals and new licensing deals with popular franchises such as 'Bluey' and 'One Piece,' alongside an upcoming Pokemon partnership. Strategic expansion, including digital integration via Epic Games and 24 new store openings globally, particularly in growth markets like China and India, further contributed to broadening its consumer base and driving growth.

Analysis

Lego reported a record-setting first half, with revenue climbing 12% to $5.4 billion and operating profit growing 10% to $1.4 billion. This performance was driven by a highly effective product and market expansion strategy. A record 314 new sets were launched, significantly broadening the product portfolio beyond its traditional base. Key to this was a successful push into the adult consumer segment with lines like botanicals and home decor, which the company cites as effective for recruiting new customers. Furthermore, Lego has leveraged high-value intellectual property through new partnerships with franchises like "Bluey" and "One Piece," with a multiyear Pokemon collaboration slated for 2026. This product diversification is complemented by strategic retail expansion, with 24 new stores opened globally, focusing on high-growth markets such as China and India to build brand presence and drive sales where familiarity is lower. The company's digital strategy, highlighted by its partnership with Epic Games, also serves to bridge the physical and digital worlds, engaging new audiences.

Key Decisions for Investors

• Given Lego is a private company, investors should view its robust performance as a competitive benchmark for publicly traded toy manufacturers like Mattel and Hasbro, assessing their respective product innovation pipelines and IP licensing strategies in response.
• Lego's success with licensed products like 'Bluey' and 'One Piece', and its upcoming Pokemon deal, reinforces the value of strong IP; investors in media and entertainment should consider this a positive indicator for companies that own high-engagement franchises.
• For institutional investors with private market exposure, Lego's results exemplify the strong returns and brand resilience achievable within the unlisted consumer discretionary sector, highlighting the value of well-executed diversification and direct-to-consumer strategies.