LG CNS, Q2 Sales of 1.4602 Trillion Won… AI and Cloud Drive Growth

[Financial News] AX specialist company LG CNS achieved solid performance in Q2 following Q1.
LG CNS announced on the 23rd that its consolidated sales for Q2 2025 amounted to 1.4602 trillion won, with an operating profit of 140.8 billion won. Compared to the same period last year, sales grew by 0.7% and operating profit by 2.3%. The sales for the first half of the year increased by 6.0% year-on-year to 2.6715 trillion won, and operating profit increased by 29.2% to 219.7 billion won.
The AI and cloud sectors, which are the main growth drivers for LG CNS, maintained continuous growth, leading to an increase in Q2 performance. The sales of the AI and cloud business grew by 8.2% year-on-year to 872.4 billion won, accounting for 60% of total sales.
In the AI sector, LG CNS solidified its market dominance by winning major financial and public AX projects. LG CNS is actively conducting AX business with major financial companies such as NH Nonghyup Bank, Mirae Asset Life Insurance, Mirae Asset Securities, Shinhan Bank, Shinhan Card, Woori Bank, and KB Financial Group. Additionally, it won the largest AI platform project ordered by a public institution this year, the Gyeonggi Provincial Office of Education AI platform project, and the Ministry of Foreign Affairs AI platform project. In the financial and public sectors, which handle sensitive information, LG CNS strengthened its competitiveness based on the national representative sovereign AI model 'Exaone (EXAONE)' and the AI model co-developed with Cohere, which has strong security-based Agentic AI technology.
In the cloud sector, the sales of domestic and international data center businesses have become visible, significantly contributing to performance. LG CNS is achieving results in the AI data center business as the top domestic data center design, build, and operate (DBO) company. Recently, it completed consulting and design for the Indonesian AI data center business globally, and domestically, it signed a large-scale co-location contract with Naver Cloud at the Jukjeon data center.
Due to the continuous demand for cloud transition from companies in various industries such as gaming, finance, and logistics, the sales of cloud operation and management services (MSP) have also continued to expand. The smart engineering sector recorded sales of 266.7 billion won. The smart factory sector diversified its customers in the open market, recording a more than sevenfold increase in orders compared to the same period last year (based on the first half), and expanded its business scope through entry into new industrial fields such as defense (smart factory business), refining (digital twin business), and public (Gangwon insect smart factory farm business). The smart logistics sector is cruising by expanding its North American process logistics business and the construction of new factory logistics automation facilities for open manufacturing customers.
In the smart city sector, stable sales are secured through transportation projects in various global regions such as Greece, the United States, Kenya, Colombia, and Malaysia. The digital business services sector recorded sales of 321 billion won. Following Q1, it continued to secure large-scale next-generation projects centered on securities and insurance. It carried out various system integration (SI) and system management (SM) projects in the public sector, including the Ministry of Foreign Affairs, the Court Administration Office, and the Corruption Investigation Office, as well as the Bank of Korea's digital currency (CBDC) project.
LG CNS secured financial soundness as its borrowings and debt ratio continued to decrease. In particular, in Q2, the debt ratio decreased from 80% in Q1 to 67%. It secured approximately 1.5 trillion won in cash assets and about 1.14 trillion won in net cash, establishing a solid financial foundation. As a result, it was upgraded to 'AA stable' by the three major domestic credit rating agencies last June.

jiany@fnnews.com Yeon Ji-an Reporter