BILLUND, DENMARK — LEGO posted record first-half revenue of DKK 41.9 billion as consumer sales rose 22%, while profit growth funded expansion and sustainability investment.
The LEGO Group reported its strongest first-half revenue on record on Tuesday, extending a run of growth that has allowed the Danish toy company to increase investment in manufacturing, retail experiences and new forms of play.
Revenue reached DKK 41.9 billion in the first six months of 2026, up 21% from DKK 34.6 billion a year earlier. At constant exchange rates, the increase was 26%. Consumer sales — a measure of purchases by shoppers rather than LEGO's revenue from customers — increased 22%.
Operating profit rose 22% to DKK 10.9 billion, while net profit climbed 32% to DKK 8.6 billion. LEGO said its growth continued to exceed that of the wider toy market and that it gained market share.
The figures extend the momentum recorded in 2025, when LEGO generated DKK 83.5 billion in annual revenue, operating profit of DKK 22.0 billion and net profit of DKK 16.7 billion.
Profitability holds as revenue expands
The scale of LEGO's revenue increase was accompanied by broadly stable operating profitability.
A CRN Times calculation using the company's reported figures puts its first-half operating margin at about 26.0%, almost unchanged from approximately 26.0% in the corresponding period of 2025. The calculation divides reported operating profit by revenue and is not a separately reported LEGO performance measure.
The net profit margin, using the same method, increased to roughly 20.5% from about 18.8% a year earlier, reflecting the faster rise in bottom-line earnings.
LEGO attributed the increase in operating profit to higher revenue, scale efficiencies and productivity improvements while continuing to spend on strategic priorities. Cash flow from operating activities rose 47% to DKK 8.6 billion from DKK 5.9 billion.
Free cash flow increased to DKK 2.1 billion from DKK 1.7 billion despite higher long-term investment.
That combination is significant because LEGO is expanding capacity while maintaining substantial cash generation. Investment in a new factory and in expanding and upgrading existing facilities reached DKK 4.6 billion during the half, compared with DKK 4.2 billion a year earlier.
New products and partnerships broaden demand
LEGO launched more than 330 products during the first six months of 2026. Its best-selling themes included Speed Champions, Botanicals, Technic, Icons and Star Wars, combining internally developed brands with licensed entertainment properties.
The company also highlighted partnerships connected with Formula 1, the 2026 FIFA World Cup and KPop Demon Hunters as contributors to consumer interest.
Another part of its product strategy is LEGO Smart Play, a technology-enabled platform designed to add interactive features to physical play. The platform has so far appeared in LEGO Star Wars and Pokémon products.
The breadth of the portfolio matters to LEGO's growth strategy because the company increasingly serves consumers across age groups and interests rather than relying on a narrow children's-toy market.
Its physical retail network is expanding alongside the product range. LEGO said it had reached 1,106 branded stores worldwide by the end of the first half.
LEGO directs cash toward expansion
The company is also spending more heavily on infrastructure and direct consumer experiences.
During the period, LEGO invested DKK 1.9 billion in its acquisition of 29 LEGO Discovery Centres and LEGOLAND Discovery Centres from Merlin Entertainments. The transaction, completed in February, brought centres in nine countries and about 1,500 employees into the group. The locations collectively attract around five million visitors annually.
Manufacturing capacity remains another major investment area. Construction continued on LEGO's new factory and regional distribution centre in Virginia, with both scheduled to open in 2027.
The regional distribution centre is planned as a two-million-square-foot facility supporting the future Virginia factory and LEGO's strategy of placing manufacturing and distribution capacity closer to large markets.
In Billund, the company opened its Kornmarken Campus in June. The 100,000-square-metre manufacturing innovation centre houses more than 1,800 employees involved in developing, testing and scaling production technology.
Sustainability investment continues alongside growth
LEGO said it continued increasing the renewable and recycled content of materials purchased for its bricks while working to reduce dependence on virgin fossil-based raw materials.
Its transition from plastic to paper-based bags is continuing, with remaining packaging lines targeted for conversion by 2027.
The company has also started construction of its largest solar project to date near Billund. The planned facility will use 160,000 panels and is expected to generate about 99 GWh of renewable electricity annually when operational in 2027.
Those projects follow a record 2025 in which LEGO reported DKK 83.5 billion in revenue, 12% above the previous year. First-half growth of 21% therefore represents an acceleration from an already elevated revenue base rather than a rebound from a weak comparative period.
Whether that pace can be sustained through the second half will depend on consumer demand and the performance of LEGO's expanding portfolio. The first-half figures, however, show the company entering that period with higher sales, profits and operating cash flow while continuing a substantial programme of investment in products, manufacturing and direct consumer experiences.
More from this section
Business- Loading related stories…