LG CNS (064400) reported second-quarter revenue of 1.5208 trillion won, the company said on the 31st. That marked a 4.2% increase from the second quarter of last year. Operating profit over the same period fell 9.2% to 127.9 billion won.
On a cumulative first-half basis, the company posted revenue of 2.8358 trillion won and operating profit of 222.1 billion won, up 6.1% and 1.1% respectively from a year earlier.
Revenue from the artificial intelligence (AI) and cloud business, LG CNS's core growth engine, rose 5.1% year-on-year to 1.6714 trillion won in the first half. The segment accounted for about 59% of total revenue.
Cloud revenue stemmed from the performance of the data center external business. LG CNS won design, build and operate (DBO) contracts worth more than 1 trillion won in the first half. Following the introduction of a modular AI data center as a new DBO business model, the company recently launched "XPUWorks," a platform that allows subscription to AI infrastructure such as graphics processing units (GPUs) and neural processing units (NPUs).
In the AI field, the company strengthened its manufacturing and logistics AI transformation (AX) business targeting external clients including Doosan, the Korea Federation of SMEs, Kurly and LX Pantos. It is also broadening its industry portfolio into pharmaceuticals and biotech, airports and aviation, and defense and shipbuilding. Cooperation with global AI companies such as OpenAI and Anthropic is also expanding.
First-half revenue from the smart engineering business rose 6.2% year-on-year to 502.4 billion won. In the smart factory business, external projects in the defense, shipbuilding, semiconductor and pharmaceutical sectors are being converted into revenue, in addition to affiliate-based revenue. First-half revenue from the digital business service segment rose 8.8% year-on-year to 662.1 billion won.
LG CNS plans to expand its physical AI business in the second half. Based on its robot learning and operating platform "PhysicalWorks" and an industry-specific robot foundation model (RFM), the company will strengthen humanoid robot learning and field-application verification.
To this end, it is also pursuing group-wide collaboration within LG. LG CNS recently signed a physical AI infrastructure contract worth about 190 billion won with LG Electronics. The company will handle proof of concept (PoC) for LG Electronics' humanoid robot learning technology, the PhysicalWorks platform, and the supply of GPU-based AI infrastructure. LG CNS is also expanding its robot transformation (RX) ecosystem by cooperating with robotics firms including Skild AI, Config, Dexmate and Genesis AI.
The company is also expanding its global business. The AI data center in Indonesia, the first won by a Korean company, is scheduled for completion in the second half. In the second half, LG CNS will participate in "IMTS 2026," a machine tool exhibition in Chicago, the United States, to strengthen its push into the North American manufacturing AX market.
