LG CNS said in a filing on the 31st that it posted revenue of 1.5208 trillion won and operating profit of 127.9 billion won in the second quarter of this year. Revenue rose 4.2% from a year earlier, but operating profit fell 9.2%.
Cumulative revenue for the first half was 2.8358 trillion won, up 6.1% year over year. Operating profit for the same period was 222 billion won, up 1.1%.
LG CNS said the share of external business revenue increased across all business areas. First-half revenue from the AI and cloud business was 1.6714 trillion won, up 5.1% year over year. That is about 59% of total revenue.
In the cloud institutional sector, the DBO business, which provides data center design, build, and operation as a one-stop service, grew. LG CNS booked sales from its hyperscale AI data center projects under construction in Samsong, Goyang, and Jukjeon, Yongin, and won orders worth about 1 trillion won in the first half alone for DBO projects. It also recently launched "XPUWorks," a platform that offers AI infrastructure such as GPUs and Neural Processing Unit (NPU) on a subscription basis.
In the AI business, the company expanded artificial intelligence transformation (AX) projects in manufacturing and logistics for Doosan, the Korea Federation of Small and Medium Enterprises, Kurly, LX Pantos, and others. It is also broadening into pharmaceuticals and biotech, airports and aviation, and defense and shipbuilding. In the financial and public institutional sector, it is pursuing projects applying its in-house agentic AI platform "AgenticWorks," and is also seeking new customers through partnerships with AI companies including OpenAI, Palantir, and Anthropic.
First-half revenue from the smart engineering business was 502.4 billion won, up 6.2% year over year. In the smart factory institutional sector, external projects won in defense, shipbuilding, semiconductors, and pharmaceuticals, in addition to existing LG affiliates, were reflected in revenue. LG CNS is expanding the business around its AI smart factory solution "Factova."
First-half revenue from the digital business services (DBS) business was 662.1 billion won, up 8.8% year over year. Banking, non-life insurance, and life insurance businesses in finance grew evenly, and collaboration with global financial customers also expanded, the company said.
LG CNS plans to strengthen the learning and field application validation of Humanoid Robot based on an industry-specialized RFM (robot foundation model) and its robot learning and operations platform "PhysicalWorks" in the physical AI field.
Recently, LG CNS signed a physical AI infrastructure contract worth about 190 billion won with LG Electronics. It will supply not only LG Electronics' Humanoid Robot learning PoC but also the PhysicalWorks platform and essential GPU-based AI infrastructure.
It will also partner with robot corporations such as Skilled AI, Konfig, DexMate, and Genesis AI to develop and apply robot foundation models (RFM) in the field. It is discussing related cooperation with Nvidia, Google DeepMind, and Amazon Web Services (AWS) as well.
Meanwhile, the overseas (Indonesia) AI data center that LG CNS became the first among domestic corporations to win is slated for completion in the second half. It also plans to expand financial DX projects centered on the Asia-Pacific and Japan (APJ) region.