CJ Logistics reports revenue growth as operating profit declines
South Korea’s CJ Logistics reported higher revenue but lower operating profit in the third quarter of 2026, as growth across its parcel delivery, contract logistics and international operations was offset by rising operating costs and continued investment in service improvements.
The company recorded consolidated revenue of KRW 3.3581 trillion (approximately KRW 3,358.1 billion), an increase of 9.5% compared with the same period last year. Operating profit declined by 25.3% to KRW 110.5 billion, according to preliminary financial results released on November 10.
Revenue growth was supported by new contracts and higher volumes across the company’s main business divisions. However, fewer operating days due to the timing of South Korea’s Chuseok holiday, increased logistics costs and expenditure on network improvements affected profitability.
International logistics and contract operations expand
CJ Logistics’ global business generated revenue of KRW 1.1679 trillion during the quarter, representing a year-on-year increase of 13.1%. The company attributed the expansion to stronger contract logistics operations in the United States, India and Vietnam, alongside growth in cross-border e-commerce shipments.
Operating profit in the global division reached KRW 11.8 billion, declining from the previous year as the company faced continued external uncertainty and additional costs associated with expanding its international logistics infrastructure.
Contract Logistics revenue increased by 8.3% to KRW 933 billion, while operating profit fell by 11% to KRW 49.2 billion. Within the division, Warehousing & Distribution revenue rose by 11.8%, supported by higher volumes from existing customers and additional contracts in sectors including healthcare, pharmaceuticals and consumer goods.
The company’s Port & Delivery operations, which include port handling and middle-mile transportation, also benefited from new business. CJ Logistics reported growth in its AI-supported transportation activities, using digital systems to connect cargo with available vehicles and optimise delivery routes.
Nevertheless, higher fuel prices, inflation and other operating expenses contributed to lower profitability across the contract logistics business.
Parcel volumes increase despite cost pressures
CJ Logistics’ O-NE parcel delivery division reported revenue of KRW 976.5 billion, up 1.2% year on year, while operating profit declined by 39.5% to KRW 38 billion.
Total parcel volumes increased by 4.6% compared with the third quarter of 2025, supported by the company’s seven-day delivery service and consumer parcel operations. Early-morning and same-day delivery volumes increased by 8%, while e-commerce fulfillment volumes rose by 16%.
The company said the timing of the Chuseok holiday reduced the number of operating days during the quarter compared with the previous year. Additional spending on flexible hub terminal operations and service improvements also weighed on earnings.
AI and automation remain central to expansion plans
CJ Logistics plans to continue investing in artificial intelligence, automation and digital transport management to improve operational efficiency and support further business growth.
In its parcel delivery business, the company intends to expand AI-based volume forecasting and upgrade logistics equipment at sub-terminals. Contract Logistics will focus on automated warehousing, integrated dispatching systems and the development of its digital middle-mile transportation platform, the unban.
Internationally, CJ Logistics plans to expand its contract logistics activities in the United States, India and Vietnam. The company also intends to enter India’s business-to-consumer fulfillment market more extensively, while pursuing additional customers in Southeast Asia.
Its freight forwarding strategy will increasingly target higher-value sectors, including biotechnology and healthcare, alongside improvements to end-to-end logistics services covering transportation and customs clearance.
The latest quarterly results highlight the contrast between growing demand across CJ Logistics’ operations and the costs associated with expanding and upgrading its network. The company is seeking to improve efficiency through technology while continuing to pursue new contracts in domestic and international markets.
