CJ Logistics Q2 2025 Performance: What Happened?

CJ Logistics reported revenue of KRW 30.484 trillion (-3.0% YoY), operating profit of KRW 115.2 billion (0.0%), and net profit of KRW 52.5 billion (-0.6%) for Q2 2025. While revenue slightly missed market expectations, operating profit met the forecast.

Analyzing the Drivers of Performance

The decline in revenue is attributed to decreased volume in the CL division, increased competition in the courier division, and the impact of the global economic slowdown. Conversely, operating profit met expectations thanks to cost management efforts and improved profitability in the global business segment. The slight decline in net profit suggests a possible increase in financial expenses.

Performance Analysis by Business Segment

  • CL Division: Continued decline in volume due to the construction industry downturn.
  • Courier Division: Ongoing intensifying competition and rising costs.
  • Global Division: Maintained robust growth, but global economic uncertainties remain.
  • Construction Division: Continued sluggish performance due to the domestic construction downturn.

Key Takeaways for Investors and Action Plan

While the growth of the global business segment is positive, the sluggish performance of the CL and courier divisions, coupled with global economic uncertainties, pose investment risks. We maintain a ‘Neutral’ rating and recommend closely monitoring future earnings trends, global business growth, and changes in macroeconomic indicators.