Powered by growth in its artificial intelligence (AI) and cloud businesses, LG CNS broke through 6 trillion won in sales last year.
LG CNS said on the 27th that full-year sales last year rose 2.5% from a year earlier to 6,129.5 billion won. Operating profit increased 8.4% over the same period to 555.8 billion won. The operating margin was 9.1%, up 0.5 percentage point (p) from the previous year.
Fourth-quarter sales last year were 1,935.7 billion won, down 4.4% from a year earlier. Operating profit was 216.0 billion won, up 7.9%.
In particular, annual sales in AI and cloud, LG CNS's core growth engines, came to 3,587.2 billion won, up 7% from a year earlier.
A company official said, "In AI, we expanded our AX (AI transformation) business by securing customers across a range of industries, including finance, manufacturing and the public sector," adding, "We kicked off business using the agentic AI full-stack platform 'AgenticWorks' in earnest and actively rolled out AX projects that applied AI services from the three global cloud companies."
In the cloud segment, it said it expanded its data center design, build and operate (DBO) business. Based on the "One LG" solution, which brings together LG's core strengths such as optimal design, build and operate capabilities, high-efficiency cooling solutions and advanced power systems, the company strengthened competitiveness in AI data centers and focused on attacking the global AI data center market.
Annual sales in smart engineering were 1,193.5 billion won. In smart logistics, the company expanded its portfolio last year into beauty, food, fashion and defense. It also won logistics automation projects from Korean corporations that advanced overseas, laying the groundwork to expand in foreign markets.
LG CNS said, "The smart factory business is proceeding stably with projects won in defense (smart engineering business), semiconductors (automated inspection equipment business) and pharmaceuticals (manufacturing execution system business), and we are expanding sales of lightweight smart factory solutions for small and midsize manufacturing companies."
Annual sales in digital business services were 1,348.8 billion won. LG CNS won major financial IT projects last year from Korea Securities Depository (KSD), Mirae Asset Life Insurance and NH NongHyup Bank.
It also strengthened its system integration (SI) and system management (SM) capabilities based on agentic AI. As the main contractor for "Project Hangang," LG CNS and the Bank of Korea conducted the nation's first "agentic AI-based automatic settlement system for digital currency" late last year, implementing next-generation payment infrastructure. It is also carrying out business related to security token offerings (STOs) and stablecoins.
This year, it will continue to expand its global business in the United States and the Asia-Pacific region. In logistics and manufacturing AX, it is expanding robot deployment projects in North America for full automation of affiliate plants.
In data centers, it won a project to build an AI data center in Indonesia as the first Korean corporations to do so and is preparing to expand to Vietnam and elsewhere. It is also growing its global finance business by exporting K-banking systems to the Asia-Pacific region, including Indonesia and Singapore.