Lotte Innovate’s Q3 Operating Profit Rises 88%

Lotte Innovate released its third-quarter results on the 2nd. Consolidated revenue was 284 billion won, in line with the market forecast of 286.4 billion won. Operating profit reached 12.4 billion won, more than 10% above the forecast of 11 billion won. The company said selective contract wins, operational efficiencies and improved subsidiary earnings supported the results. Its title said operating profit rose 88% from the same quarter a year earlier.

The company plans to accelerate growth from 2027, centered on data centers and AI. Analysts identified expansion of business related to global cloud service providers (CSPs) and revenue from data center DBO (design, build and operate) projects as key drivers. Kyobo Securities estimated data centers would account for 18.4% of consolidated revenue in 2026, 20.9% in 2027 and 25.3% in 2028.

Lotte Innovate has successively won contracts to operate the KAMSQUARE data center, deliver an edge data center DBO project for IGIS Asset Management, and operate a large data center in Ansan. Long-term contract-based operations are considered capable of generating ongoing revenue. Other cited growth factors include expanding its own data center capacity, greater AI and IT infrastructure investment by group affiliates, and potential expansion overseas, including to Vietnam.

In AI, the company is upgrading its AI transformation (AX) business and building capabilities to commercialize physical AI. It plans to develop its technical competitiveness through robot training and field trials in industrial settings, then expand into robotics-as-a-service (RaaS).

Lotte Innovate released its third-quarter results on the 2nd. Consolidated revenue was 284 billion won, in line with the market forecast of 286.4 billion won. Operating profit reached 12.4 billion won, more than 10% above the forecast of 11 billion won. The company said selective contract wins, operational efficiencies and improved subsidiary earnings supported the results. Its title said operating profit rose 88% from the same quarter a year earlier.

The company plans to accelerate growth from 2027, centered on data centers and AI. Analysts identified expansion of business related to global cloud service providers (CSPs) and revenue from data center DBO (design, build and operate) projects as key drivers. Kyobo Securities estimated data centers would account for 18.4% of consolidated revenue in 2026, 20.9% in 2027 and 25.3% in 2028.

Lotte Innovate has successively won contracts to operate the KAMSQUARE data center, deliver an edge data center DBO project for IGIS Asset Management, and operate a large data center in Ansan. Long-term contract-based operations are considered capable of generating ongoing revenue. Other cited growth factors include expanding its own data center capacity, greater AI and IT infrastructure investment by group affiliates, and potential expansion overseas, including to Vietnam.

In AI, the company is upgrading its AI transformation (AX) business and building capabilities to commercialize physical AI. It plans to develop its technical competitiveness through robot training and field trials in industrial settings, then expand into robotics-as-a-service (RaaS).