LG CNS achieved steady performance in the second quarter, following a strong first quarter.
LG CNS noted on the 23rd that it recorded consolidated sales of 1.46 trillion won and operating profit of 140.8 billion won in the second quarter of 2025. Compared to the same period last year, sales grew by 0.7% and operating profit by 2.3%.
In the first half of the year, sales increased by 6.0% compared to the same period last year, reaching 2.67 trillion won, while operating profit reached 219.7 billion won, a 29.2% increase year-on-year.
The artificial intelligence (AI) and cloud sectors, which are LG CNS's main growth drivers, maintained a continuous growth trend, contributing to the rise in second-quarter performance. Revenue from AI and cloud businesses was reported at 872.4 billion won, an 8.2% increase from the same period last year, accounting for 60% of total sales.
In the AI sector, LG CNS firmly established its market dominance by securing major financial and public AX projects. LG CNS is actively engaged in AX projects for major financial corporations such as NH Nonghyup Bank, Mirae Asset Life Insurance, Mirae Asset Securities, Shinhan Bank, Shinhan Card, Woori Bank, and KB Financial Group. Additionally, it obtained contracts for the largest AI platform projects from the Gyeonggi Provincial Office of Education and the Ministry of Foreign Affairs. In sectors dealing with sensitive information such as finance and public administration, LG CNS enhanced its competitiveness based on the national representative sovereign AI model "EXAONE" and AI models co-developed with Cohere, which possesses strong security-based Agentic AI technology.
In the cloud sector, revenue from domestic and international data center projects significantly contributed to performance as visibility increased. As the leading data center design, construction, and operation (DBO) provider in Korea, LG CNS has achieved results in AI data center projects. Recently, it completed consulting and design for an AI data center project in Indonesia and successfully signed a large-scale co-location contract with Naver Cloud at the Jugcheon data center. Moreover, due to ongoing cloud transformation demands from various industry corporations, including gaming, finance, and logistics, revenue from cloud operation and management services (MSP) continued to expand.
Revenue in the smart engineering sector reached 266.7 billion won. In the smart factory sector, LG CNS diversified its customer base in the open market, achieving more than a sevenfold increase in orders compared to the same period last year. It expanded its business scope by entering new industries such as ▲defense (smart factory business) ▲refining (digital twin business) ▲public sector (Gyeonggi insect smart factory farm project). The smart logistics sector is smoothly progressing by expanding its North American process logistics business and establishing logistics automation facilities for new factories for open manufacturing customers. In the smart city sector, it has secured stable revenue through transportation projects in various global regions, including Greece, the United States, Kenya, Colombia, and Malaysia.
Revenue in the digital business service sector reached 321.0 billion won. Continuing from the first quarter, it secured large next-generation projects centered on securities and insurance. It undertook various system integration (SI) and system management (SM) projects for public sectors, including the Ministry of Foreign Affairs, the Supreme Court Administrative Office, and the Chief Inspection Officer, as well as the central bank's digital currency (CBDC) project.
LG CNS has ensured financial soundness as its borrowing funds and liability ratios continue to decrease. Notably, in the second quarter, the liability ratio dropped from 80% in the first quarter to 67%. By securing around 1.5 trillion won in cash assets and approximately 1.14 trillion won in net cash, it also established a solid financial foundation. Consequently, in June, it was upgraded to an "AA stable" credit rating by Korea's top three credit rating agencies.
LG CNS plans to strengthen its business foundation with the goal of creating visible achievements in the 'Agentic AI' and 'Physical AI' markets in the second half of the year.
LG CNS will expand its financial and public AX projects utilizing "EXAONE" developed in conjunction with LG AI Research Institute and Cohere, as well as focus on AI data center projects. Additionally, it is developing an integrated platform to kickstart its Agentic AI business. Preparations for the RX (Robot Transformation) project based on humanoid robots are also being gradually pursued. After signing a strategic cooperation agreement with Skilled AI, a global top-tier AI robot company recognized for its Robot Foundation Model (RFM), LG CNS is currently conducting proof of concept (PoC) trials to apply humanoid robots in industrial settings for manufacturing clients.