iCRAFTCo

Icraft was founded in 2000 and listed on KOSDAQ in December 2004, initially focusing on network integration services building internet core and transmission networks for telecom carriers.

The company later expanded into total network construction services, including BcN and security solutions, for general enterprises and the public sector.

More recently, in response to expanding AI investment, Icraft has been diversifying from a network-equipment-centric business toward the cloud and AI data center market, cultivating GPU-based AI data center design and build-out along with full-stack AI services as new growth pillars.

The company has three affiliates, including one called Sience, whose operations are reflected in consolidated results. Its main customer base consists of cloud service providers (CSPs) such as Naver Cloud, telecom carriers, and government or public-sector agencies procuring AI infrastructure projects.

A distinguishing feature of the business is its capability, as an NVIDIA partner in Korea, to integrate core AI data center components including GPU servers, Infiniband networking, and AI storage.

In terms of competitive positioning, larger system integrators and cloud operators such as Samsung SDS and KT Cloud participate in the market as CSPs, while Icraft positions itself as a vendor or partner that either collaborates with them or participates directly in government-led projects.

Given this order-driven business model, revenue recognition is heavily influenced by the timing and scale of individual project awards and contracts.

Annual results show Icraft near breakeven in 2022 with revenue of KRW 112.9bn and operating profit of only KRW 0.25bn, before improving in 2023 to revenue of KRW 138.7bn and operating profit of KRW 5.15bn (a 3.7% operating margin).

In 2024, revenue declined to KRW 100.5bn, and while operating profit held at KRW 1.6bn, net income fell to a loss of KRW 0.93bn, suggesting a drag from non-operating items.

In 2025, revenue more than doubled to KRW 206.5bn, operating profit rose to KRW 8.01bn, and net income reached KRW 10.14bn, marking a clear swing to profitability.

This is corroborated by FnGuide data showing consolidated 2025 revenue up 105.5% year-on-year, operating profit up 401.6%, and net income turning to a profit, with the source noting that rising AI infrastructure investment drove data center system demand and accelerated digital transformation, while partnerships with AI hardware and software makers and prior data center build-out experience supported revenue growth.

Quarterly results, however, show extreme volatility.

In the second quarter of 2025, revenue was KRW 29.38bn with an operating loss of KRW 0.72bn, which local media confirmed by reporting a consolidated operating loss of KRW 722 million, down 54.43% year-on-year, and revenue of KRW 29.38bn, up 48.84% over the same period.

By contrast, the fourth quarter of 2025 saw revenue of KRW 109.1bn—more than half of the full-year total in a single quarter—along with operating profit of KRW 11.42bn and net income of KRW 8.19bn, meaning most of the annual result was concentrated in that one quarter.

Entering 2026, however, first-quarter revenue fell to KRW 16.34bn with an operating loss of KRW 2.50bn and a net loss of KRW 1.94bn, and although second-quarter revenue recovered to KRW 40.03bn, the company still posted an operating loss of KRW 0.29bn and a net loss of KRW 1.73bn, extending losses through the first half.

Wise Report attributes this pattern to the fact that consolidated first-quarter 2026 revenue fell 59.4% year-on-year, the operating loss widened 52.7%, and the net loss widened 77.8%, with the deterioration occurring because telecom carrier network investment is concentrated in the second half, leaving first-half results weak.

Korea's cloud and AI infrastructure market is expanding rapidly on the back of large-scale government GPU procurement and build-out policies.

Industry reporting notes that following roughly KRW 1.4 trillion in GPU procurement spending last year, the government is pursuing a GPU build-out project worth about KRW 2.08 trillion this year, and that CSP strategies are being shaped by the government's GPU procurement, build-out, and operations support project, a core pillar of its 'AI highway' initiative.

Participants in this program include Naver Cloud, NHN Cloud, and Kakao selected last year, with Naver Cloud, KT Cloud, Samsung SDS, Coupang, and Elice Group participating this year, with large CSPs leading the market as project sponsors.

Icraft participates as a vendor supplying core infrastructure such as networking and storage as these CSPs expand their GPU clusters and data centers, and its status as an NVIDIA Elite Partner is cited as a differentiator, noting that the company had strategically cultivated NVIDIA-based AI infrastructure business well before the AI market's rapid growth, and has secured a portfolio spanning DGX/HGX, AI networking, AI storage, and AI platforms across the full AI data center stack.

Nonetheless, large system integrators and cloud operators such as Samsung SDS and KT Cloud also operate in this space, creating competition, and rapid GPU architecture generational shifts (such as NVIDIA's Vera Rubin) mean technical responsiveness and execution track record remain continuously important.

Cyclically, the industry is in a growth phase where government/public procurement overlaps with private CSP investment expansion, though the extent of benefit to any single vendor can vary widely depending on budget allocation and individual contract award outcomes.

Regarding the second half of 2026, the confirmed facts center on three large supply contracts signed since June.

First, Icraft disclosed on June 18 a contract with Naver Cloud for 2026 NIPA NVIDIA Infiniband network switches, running from June 16, 2026 to March 31, 2027, valued at approximately KRW 51.82bn, or 25.09% of recent revenue.

It then signed a '2026 NIPA high-performance AI storage supply contract' with Naver Cloud valued at KRW 104.0bn (excluding VAT), equivalent to 50.36% of consolidated revenue at the end of 2025, running from July 3, 2026 to March 31, 2027, with payment structured as 50% upfront, 31.31% as a progress payment, and 18.69% as final settlement.

Separately, the company signed a KRW 32.28bn 2026 NIPA NVIDIA Vera Rubin network supply contract with BNI Inc., equivalent to 15.63% of recent revenue, running from July 23, 2026 to March 31, 2027.

As all three contracts extend through the end of March 2027, revenue recognition could be spread across the second half of 2026 and into the first quarter of 2027.

In addition, Icraft was selected for the National IT Industry Promotion Agency's (NIPA) '2026 AI Computing Resource Infrastructure Strengthening Project' (GPU procurement, build-out, and operations support), through which it will build key AI network and storage infrastructure through 2027 to support stable operation and efficient resource utilization of public AI data centers.

Based on the disclosed contract values, this order pipeline represents a meaningful share of recent revenue and could support future results, though as prior quarterly patterns show, the actual timing and pace of revenue recognition may vary depending on project execution.