[Edaily Reporter Shin Yeong-bin ] LG CNS (#LGCNES) increased both its revenue and operating profit in the third quarter of this year, driven by growth in its AI, cloud, and financial services businesses. The company plans to lay the groundwork for future growth by expanding investments in AI infrastructure—such as data centers and graphics processing unit (GPU) services—and by rolling out its robot learning and operation platform to the group’s manufacturing sites.

LG CNS announced on the 30th that its consolidated operating profit for the third quarter reached 138.2 billion won, a 15.0% increase compared to the same period last year. Revenue rose 9.3% year-over-year to 1.6643 trillion won. The operating profit margin stood at 8.3%.

Revenue in the AI and cloud sectors reached 961.5 billion won, a 9.3% increase compared to the same period last year. Growth was driven by demand for Managed Service Provider (MSP) services—fueled by companies’ expanding use of the cloud—as well as AI infrastructure construction and maintenance projects. Revenue also increased from the construction and operation of the Samsong AI Data Center and the colocation business, which involves installing and managing customers’ equipment in data centers.

Revenue in the Digital Business Services segment rose 21.3% to 408.2 billion won. Revenue growth accelerated as next-generation system construction projects for financial institutions—including NH Nonghyup Bank, MIRAE ASSET Life Insurance CO., Ltd., and KB Kookmin Bank—entered the full-scale development phase. In contrast, revenue from the Smart Engineering segment fell 3.9% to 294.5 billion won, impacted by a decline in revenue at some affiliates.

The company expects this growth momentum to continue in the fourth quarter, driven primarily by AI, cloud, and next-generation financial projects. Song Gwang-yoon, Chief Financial Officer (CFO), stated during the earnings call that day, “We forecast full-year revenue growth this year to be in the high single digits compared to the previous year.” The company plans to maintain a stable operating profit margin through profitability-focused selective order intake, project-by-project profit and loss management, and cost efficiency.

The AI infrastructure business will expand into overseas data centers and GPU services. The data center in Jakarta, Indonesia, is set to be completed in early November and has already secured customers for the entire leased capacity.

Yoo Ki-woong, Senior Vice President in charge of the Cloud Infrastructure Business, explained, “By securing tenants for the entire facility prior to completion, we have established a stable revenue base from the very start of operations.” He added that the company is preparing to build additional data centers in Indonesia and is discussing development projects with local partners in key Asia-Pacific countries. The company also plans to expand into North America and Europe through its U.S. subsidiary and local partners.

For its overseas expansion, the company plans to utilize a data center construction method in which modules are prefabricated in a factory and assembled on-site. The strategy aims to shorten construction time to respond quickly to customer demand and integrate AI infrastructure capabilities based on NVIDIA’s Vera Rubin.

Previously, in September, LG CNS decided to invest 381.4 billion won to secure the GPUs and related equipment necessary for building AI factories. For its GPU-as-a-Service (GPUaaS) business—which involves leasing GPUs—the company is evaluating opportunities with group affiliates and overseas customers. However, considering the initial investment burden and the rapid pace of technological change, the company will proceed in phases, starting with projects where customer demand, contract terms, and the potential for a return on investment are secured.

In the Robot Transformation (RX) business, the company aims to convert proof-of-concept (PoC) projects into actual orders and expand its software business. It will enhance the “PhysicalWorks” robot learning and operation platform to connect robots from different manufacturers and types and strengthen its task management capabilities. The company also plans to develop a subscription-based software-as-a-service (SaaS) business model.

Lee Jun-ho, Executive Vice President and Head of the Smart Logistics City Business Division, stated, “We are expanding our win rate for full-scale projects through proof-of-concept (PoC) demonstrations at logistics and manufacturing sites,” adding that the company is also discussing commercialization with clients in service sectors such as patrol, hospitality, and safety. The company is also growing its business utilizing robots for facility management not only in residential complexes but also in factories, industrial parks, and data centers.

PhysicalWorks has been implemented at LGELECTRONICS’ Data Factory to provide the functions and systems necessary for robot training. While supporting pre-training for robots, the company is also jointly developing robot-based business initiatives with LGELECTRONICS. Together with manufacturing affiliates, it is advancing an “autonomous factory” project aimed at solving on-site automation challenges and improving productivity and operational efficiency.

Executive Vice President Lee stated, “We plan to continue expanding PhysicalWorks as the Group’s standard platform for physical AI training and operations, applying it not only to domestic factories but also to overseas sites.” He added, “Starting in 2027, we expect the RX business to grow rapidly, centered on securing the infrastructure for on-site robot deployment and developing data platforms for training and operations, in preparation for the full-scale utilization of physical AI across various industries.”

In the financial sector, the company expects AI to generate additional demand for existing system development projects. It explained that there is a growing trend of financial institutions either placing separate orders for Agent AI or adding agent functionality to ongoing system development projects.

Preparations for the digital asset business are also continuing. The company has signed business agreements with five global companies and foundations—Circle, Securitize, the Canton Foundation, Chainalysis, and Chainlink—to secure a foundation for technology and collaboration.

Kim Hong-geun, Executive Vice President and Head of the Digital Business Division, stated, “We currently view AI investment as having a greater effect in supplementing and complementing existing SI rather than replacing it,” adding, “We plan to support financial institutions so they can launch services as soon as the relevant regulations take effect.”