LG CNS reported second quarter revenue of 1.52 trillion won and an operating profit of 127.9 billion won. While revenue increased by 4.2% compared to the same period last year, operating profit fell by 9.2%.
For the first half of the year, the company recorded revenue of 2.83 trillion won and an operating profit of 222.1 billion won, marking increases of 6.1% and 1.1%, respectively, from the previous year. The company noted a growing share of external business revenue across all sectors.
Revenue from LG CNS's core growth drivers, the artificial intelligence (AI) and cloud sectors, reached 1.67 trillion won in the first half, a 5.1% increase year-on-year, accounting for approximately 59% of total revenue.
In the cloud sector, external business performance in data centers has been notable. As competition in AI data centers shifts towards design, build, and operate (DBO) capabilities, the company has seen sustained revenue from hyperscale AI data center projects in locations such as Samseong and Jukjeon.
During the first half, LG CNS secured over 1 trillion won in large DBO projects and introduced a modular AI data center as a new business model. Recently, it launched the 'XPU Works' platform, allowing subscription access to AI infrastructure, including graphics processing units (GPUs) and neural processing units (NPUs). The company aims to solidify its position as the leading DBO provider in South Korea.
In the AI sector, LG CNS is strengthening its manufacturing and logistics AX business with external clients such as Doosan, the Korea Federation of Small and Medium Businesses, Curly, and LX Pantos. The company is also expanding its portfolio into industries such as pharmaceuticals, aviation, defense, and shipbuilding. In its core areas of finance and public sectors, it is generating business innovation cases based on its agent AI platform, 'Agentic Works.' Additionally, it is establishing close partnerships with global AI tech giants like OpenAI, Palantir, and Anthropic to acquire new clients.
Revenue from the smart engineering business in the first half increased by 6.2% to 502.4 billion won. The smart factory business is seeing revenue conversion from external projects won in defense, shipbuilding, semiconductor, and pharmaceutical sectors.
LG CNS is enhancing the intelligence of manufacturing plants for domestic and international companies through its AI smart factory solution, 'Factoba.' The smart logistics business has seen revenue growth from logistics automation center projects targeting external clients in beauty, food, and fashion.
Revenue from the digital business services sector in the first half rose by 8.8% to 662.1 billion won, with growth across all areas of the financial sector, including banking, property insurance, and life insurance. Collaboration with global financial clients is also expanding.
In the physical AI sector, LG CNS plans to strengthen its robot learning and operation platform, 'Physical Works,' and enhance humanoid robot learning and field application verification based on industry-specific robot foundation models (RFM).
To achieve this, the company will enhance collaboration with group companies under the 'One LG' initiative. Recently, LG CNS signed a contract worth approximately 190 billion won for physical AI infrastructure with LG Electronics, which includes supplying essential AI infrastructure based on GPUs and the Physical Works platform for LG Electronics' humanoid robot proof of concept.
LG CNS is also expanding its robot transformation (RX) ecosystem by partnering with promising robotics companies such as Skilled AI, Config, Dexmate, and Genesis AI. The company plans to accelerate the commercialization of robots by optimizing both general-purpose and technically complex 'robot hand' RFMs for industrial applications. Furthermore, discussions are underway for RX collaboration with NVIDIA, Google DeepMind, and AWS to strengthen the global ecosystem.
LG CNS aims to continue expanding its global business. It is set to complete its AI data center project in Indonesia, the first overseas contract won by a domestic company, in the second half of the year.
Following its participation in a global logistics and manufacturing exhibition in the first half, LG CNS will also take part in the world's largest machine tool exhibition, 'IMTS 2026,' in Chicago later this year to enhance its presence in the North American manufacturing AX market. The company also plans to expand its financial digital transformation (DX) business, focusing on the Asia-Pacific and Japan (APJ) regions.
* This article has been translated by AI.
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