LEGO, the world’s largest toy-maker brand, continues to lead the global toy industry with expansion plans on the card. The Danish toy brand drives a large part of its revenues from the Americas, followed by Europe and some prominent markets in the Middle-Eastern region.
In 2025, Western Europe emerged as the top growth driver accompanied by the Americas and Central Eastern Europe, Middle East and Africa. With global revenues nearing $13 billion, LEGO continues to outperform major North American competitors, including Mattel and Hasbro.
LEGO’s U.S. Expansion
The company is building a factory and regional distribution center in Virginia, set to open in 2027. With $1.5 billion in investments, LEGO is establishing a major production and distribution hub in Virginia to meet growing demand in the U.S.
The facility is likely to support LEGO’s Americas operations, while shortening the supply chain and minimizing the logistical constraints.
LEGO plans to expand into new markets, including Broomfield, Colorado, and Minnetonka, Minnesota. The company is aiming to capitalize on US-based partnerships with some of the high-profile brands such as Nike, Formula 1.
LEGO is not only opening new stores in major shopping districts and malls, but it is also intensifying its distribution through major retailers such as Amazon, Walmart and Target.
With the U.S. being the top-revenue generator, it makes more sense for LEGO to have a country-wide expansion plan in order to compete with homegrown leading toymakers like California-based Mattel, Inc. and Rhode Island-headquartered Hasbro, Inc.
In May 2025, LEGO instituted the new U.S. headquarters in Boston, spanning over 157,000 square feet across six floors, serving as the workplace for more than 800 colleagues.
In-Line With Global Expansion
LEGO is striding forward with a global plan in place. In 2025, the company started a new factory and regional distribution centre in Vietnam, while spreading the capacities of existing factories in Hungary, Mexico and China. The company has announced that relocation of the London Hub is on the cards and the development of the new Copenhagen Hub is underway.
“I wouldn’t say that the volatility and everything happening doesn’t impact us, but I think we have momentum behind taking markets in a way that we can grow even so,” France 24 reported citing LEGO CEO’s AFP interview.
LEGO’s 2025
The leading toy brand by revenues has managed to grow at a rate of more than 12% in the financial year 2025, while strengthening the global supply chain. LEGO on Tuesday, March 10, 2026, reported a revenue growth of 12.4% to DKK 83.53 billion (~ $12.95 billion) for the financial year 2025 with its net profit climbing to $2.59 billion, up 21.2% from the previous year profit of $2.14 billion.
The company has attributed heightened demand for innovative LEGO® play experiences and its strong brand equity for the revenue growth as it captures more market share.
Underpinned by high operating profit, LEGO maintained a robust free cash flow equalling DKK 10.8 billion ($1.68 billion). The company ended FY 2024 with a free cash flow of DKK 10.2 billion ($1.58 billion). For the period under review, the company has made substantial investments in new factories, existing facilities and sustainability initiatives.
“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,” said LEGO CEO Niels B Christiansen in a press release.
Enhancing LEGO Experience
According to LEGO, the branded retail stores operations by the company and its website have catered to a record number of visitors, while achieving highest satisfaction scores to date. With an aim to elevate retail experiences for shoppers, LEGO has invested to make it engaging and worthwhile by collaborating with retail partners.
In a major update, LEGO Group also has plans to acquire LEGO Discovery Centres and LEGOLAND® Discovery Centres from the United Kingdom-based Merlin Entertainments. This move supports the company’s vision to provide more memorable experiences to fans of all age groups. “The acquisition was completed in February 2026 and includes 29 Centres located in nine countries, attracting around five million visitors a year,” the company said.
LEGO vs Mattel, and Hasbro
In the U.S., LEGO commands the toy market but continues to face stiff competition from El Segundo-based Mattel, Inc., which has its own fan-following with major toy brands including Hot Wheels, Barbie, Fisher-Price, UNO, American Girl, Monster High, etc. For the financial year ended December 31, 2025, Mattel posted a revenue of $5.35 billion, down 1%, followed by a substantial dip in gross margin and net income. The company expects its revenue to grow in a range of 3% to 6% in FY 2026, Mattel said in a release.
On the other hand, Hasbro, Inc. is expecting a revenue growth of 3% to 5% for FY 2026 in constant currency terms. Hasbro capitalises through its brands, including Peppa Pig, Beyblade, Transformers, The Gathering (Wizards of the Coast), Monopoly, etc. the Pawtucket-based toy major reported a revenue increase of 14% to $4.7 billion for FY 2025, largely aided by the sales of digital gaming and tabletop segment.
