Lego has just announced another impressive year — aided by an unseen advantage.
The Danish firm disclosed a 12% increase in revenue to 83.5 billion Danish kroner, equivalent to $12.9 billion, for the fiscal year 2025. The operating profit surged 18% from the previous year to reach 22 billion Danish kroner or $3.4 billion, according to the company’s statement.
“When examining growth areas, it’s rather widespread; it’s not just a single product or theme, but rather a broad spectrum,” Lego CEO Niels Christiansen informed CNBC.
Lego’s consumer sales soared by 16%, outpacing the overall toy industry’s growth of 7% during the same timeframe, as reported by the company. Since the pandemic, Lego has consistently outperformed the toy sector, increasing its market share and presence on retail shelves.
The secret behind the brickmaker’s success lies in a mix of spotting trends and an optimized supply chain.
Lego boasts a robust range of licensed products, including sets inspired by an extensive array of popular movies, television shows, and video games, alongside many original brands like its flower arrangements, artistic pieces, and architectural constructs.
Last year, Lego unveiled its largest collection ever, comprising over 860 sets that reached store shelves, with about half being entirely new items.
By expanding its product catalog, Lego has also attracted a larger consumer base. Entry points into the brand, such as its botanical line — featuring plants, flower bouquets, and succulents — and its ongoing collaboration with Epic Games, which brings Lego into the digital realm and elements from the popular video game Fortnite into physical form, have opened the door for newcomers to the brick-building universe, Christiansen explained.
Once inside, these customers explore other sets and keep building. Notably, it’s not just children; adult builders are a significant portion of Lego’s sales.
Toy industry specialists informed CNBC that Lego has been ahead of the trend, recognizing adults as important toy consumers long before the term “kidult” became mainstream. Adults purchasing for themselves make up about 25% to 30% of total global toy sales, as per Circana data.
“We excel in a variety of products and building methods that resonate with diverse passions,” Christiansen stated.
A recent addition to the company’s portfolio is its partnership with Formula One auto racing. Since last season, Lego has been involved in F1 races, organizing in-person events that include functional, life-sized cars and handcrafted trophies made from bricks for podium winners.
F1 building kits vary from Duplo sets for young children to traditional sets for casual builders, and Lego Technic sets for more skilled constructors. Furthermore, as part of the ongoing partnership between the two brands, Lego has signed on as a sponsor for an F1 Academy car starting in 2026.
However, Lego’s actual strategic advantage in outpacing the toy sector is less glamorous.
Brick by brick
Lego has built an exceptionally efficient supply chain, enabling it to manufacture products closer to their final retail locations.
Currently, the company’s factory in Mexico serves the Americas, while its Hungarian factory supplies parts of Europe, the Middle East, and Africa. Lego recently established a factory in Vietnam to cater to the Asia-Pacific region and plans to open a new facility in Virginia in 2027.
Christiansen noted that the new U.S. factory will assist in meeting the escalating demand for products in the Americas.
This not only enhances the shipping process and shortens delivery times for enthusiasts but also cuts costs. Lego can customize its manufacturing based on regional demand, thus avoiding excess inventory.
Additionally, Lego is more agile than its competitors during trade disputes or shipping delays because its factories are not all concentrated in one location.
“Emerging from a year like 2025, we’ve witnessed growth that exceeded our projections, and … it’s quite a challenge ahead,” Christiansen remarked. “Conversely, we possess strong momentum. It continues throughout this year. Therefore, we are optimistic about growth on top of ’25, perhaps not at the same rate, but our expectation is high-single-digit growth, which would be excellent.”
In 2026, Lego plans to unveil sets inspired by franchises like Pokémon, “Lord of the Rings,” and The Legend of Zelda, alongside launching its innovative Lego Smart Brick. This new high-tech, two-by-four Lego brick, featured in several new “Star Wars” sets, includes sensors that respond to movement and produce sounds and light when interacted with.
“We believe there are numerous different elements that should resonate well throughout the year,” Christiansen concluded.
