The LEGO Group is a privately held toy company in Billund, Denmark, owned 75% by the Kirk Kristiansen family through KIRKBI A/S and 25% by the LEGO Foundation. Carpenter Ole Kirk Christiansen started it in 1932 making wooden toys. The company bought its first plastic injection molding machine in 1947, and in 1958 his son Godtfred patented the stud-and-tube brick. Bricks made today still fit those made in 1958, and that compatibility remains the basis of the business.
The 2003-2004 crisis
In the late 1990s LEGO tried to answer video games and changing play habits by diversifying. It added theme parks, clothing, video games, and lines such as Galidor, and the number of unique elements climbed sharply. Complexity raised costs while sales fell, and the company posted heavy losses in 2003 and 2004.
The Knudstorp turnaround
Jørgen Vig Knudstorp, a former McKinsey consultant, became CEO in 2004. He cut the number of unique elements, sold a 70% stake in the LEGOLAND parks to Blackstone in 2005 (they were later merged into Merlin Entertainments), and refocused the company on the core brick. Licensed themes, led by LEGO Star Wars (launched in 1999), became a major growth driver next to owned themes such as City, Technic, and Ninjago (2011).
Adults, stores, and factories
Under CEO Niels B. Christiansen (since October 2017), LEGO expanded sets for adult builders under the Icons and 'Adults Welcome' banners, grew to more than 1,100 LEGO Stores, and built factories close to its main markets, including Vietnam (opened 2025) and Chesterfield County, Virginia (due 2027). Revenue rose from about $5.32 billion (DKK 35 billion) in 2017 to ~$12.7 billion (DKK 83.5 billion) in 2025, when operating profit reached ~$3.34 billion (DKK 22.0 billion), roughly a 26% margin. In the first half of 2026 revenue grew another 21% to ~$6.37 billion (DKK 41.9 billion), with net profit of ~$1.31 billion (DKK 8.6 billion).
