Lotte Innovate Q3 Operating Profit Surges 88%, Beats Expectations

What happened

Lotte Innovate disclosed on Nov. 2 that consolidated third-quarter revenue reached 284 billion won and operating profit totaled 12.4 billion won; revenue increased 2.3% and operating profit rose 88% from the same period in 2025, exceeding market expectations, which the company attributed to its profitability-focused management strategy delivering tangible results. Operating margin improved from 2.4% in the third quarter of 2025 to 4.4% in 2026; quarter-on-quarter, revenue increased 3.5% and operating profit rose 0.5%. However, the company recorded a net loss of 7.1 billion won (pretax loss of 7.6 billion won), versus net profit of 4 billion won in the third quarter of 2025 and 8.7 billion won in the second quarter of 2026; the gap between operating profit and net income after tax was approximately 19.56 billion won, and the preliminary disclosure did not provide a detailed breakdown of non-operating gains and losses including financial income and expenses. Cumulative revenue for the first nine months of 2026 declined 0.4% year-on-year to 839.7 billion won, while cumulative operating profit increased 60% to 34.6 billion won and cumulative net profit fell 44% to 5.6 billion won. Second-quarter operating profit also rose 54% year-on-year. In 2026 the company focused on reducing orders for low-margin businesses and improving project operating efficiency; profitability had previously been weighed down by losses at new-business subsidiaries, with metaverse subsidiary Caliverse recording a net loss of 19.6 billion won and EV charging subsidiary EVSIS a net loss of 15.8 billion won in 2025, when standalone operating profit was 58.1 billion won but consolidated operating profit was just 31.3 billion won. The company is also developing data centers and AI businesses as new growth drivers: in 2025 it secured a contract to operate the Kamsquare Yongin Data Center, in February 2026 it won a design, build and operate (DBO) contract for edge data centers for IGIS Asset Management, and it has recently secured an outsourced operations contract for a large data center in Ansan, expanding its external customer base.

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Source and time

Source: The Elec · 11/2/2026 · View original source