CWG rakes in N15.5 billion from IT infrastructure services in H1 2026

CWG Plc generated N15.5 billion from IT Infrastructure Services in the first half of 2026, up 142.4% from N6.4 billion recorded in the corresponding period of 2025.

The infrastructure business was the company’s fastest-growing major revenue line during the six months ended June 30, helping push total revenue to N44.4 billion, a 20.8% increase from N36.8 billion a year earlier.

The growth was driven by major contracts across the public sector, telecommunications and financial services, although the stronger contribution from infrastructure also changed CWG’s revenue mix and put pressure on its overall margins.

What the numbers are saying

CWG’s N44.4 billion H1 revenue came mainly from four businesses;

• Software generated N18.7 billion, remaining the company’s largest revenue contributor despite declining 6.3% from N20.0 billion in H1 2025.
• IT Infrastructure Services contributed N15.5 billion, up 142.4% year-on-year and accounting for about 35% of group revenue.
• Managed and Support Services contributed about N9.6 billion, while the Platform Business generated N618 million.

The sharp increase in infrastructure revenue more than offset the decline in software, accounting for the bulk of the company’s N7.6 billion increase in total revenue.

But the revenue increase did not flow through to profit at the same pace. Cost of sales rose 24.2% to N35.3 billion, compared with the 20.8% increase in revenue.

• Gross profit consequently rose 9% to N9.1 billion, while gross margin fell from 22.6% to 20.4%.
• Profit after tax increased only 2.4% to N3.65 billion, from N3.56 billion in H1 2025. The numbers point to a clear shift in where CWG is making its money: infrastructure is expanding rapidly, while software is contracting.
• The infrastructure business is largely tied to OEM hardware reselling, which carries lower margins than software. That mix shift is the main reason profit growth lagged the strong rise in revenue.
• Operating expenses rose 13.6% to N4.24 billion, while operating profit increased only 2.2% to N4.85 billion. EBITDA grew 3.4% to N5.11 billion.

IT Infrastructure as a key growth engine

CWG describes its IT Infrastructure Services business as the technology foundation that enables organisations to operate their systems efficiently, covering data centre, network, security and storage infrastructure.

• The offering includes data-centre facilities management, power and cooling, disaster recovery, network design and installation, WAN and LAN solutions, firewall management, intrusion detection and prevention, security audits, as well as data backup, recovery and storage solutions.
• The business has been on a clear upward trajectory, with revenue rising from N11.7 billion in 2023 to N12.8 billion in 2024 before nearly doubling to N24 billion in 2025. CWG described IT Infrastructure Services as its “standout growth engine” in its 2025 annual report.
• The H1 2026 performance suggests that the momentum has continued. The N15.5 billion generated in six months represents about 65% of the segment’s entire 2025 revenue, pointing to the growing contribution of infrastructure to CWG’s overall business.

The rapid expansion is also reflected in CWG’s working-capital position. Project-related prepayments rose sharply from N1.6 billion to N7.5 billion during the period, while accrued income stood at approximately N9.5 billion.

Improved financial position

CWG’s financial position also strengthened during the period.

• Borrowings fell from N4.6 billion at the end of 2025 to just 6 million by June 2026, effectively leaving the company with negligible debt. The company also paid N1.77 billion in dividends, compared with 985 million in H1 2025.
• Meanwhile, contract liabilities increased from N2.5 billion to N4.1 billion. The analysis suggests this could represent deferred software or Software-as-a-Service revenue that may be recognised in subsequent periods.

The increase in contract liabilities is notable given the decline in software revenue during H1 2026, and could provide some visibility into revenue to be recognised in subsequent periods.

Get up to speed

The H1 2026 performance builds on a strong 2025 for CWG, which also saw a notable transaction in its shares earlier this year.

• In February 2026, CWG reported N8.01 billion in pre-tax profit for 2025, up 81.36% from N4.4 billion in 2024, while revenue climbed to N65.6 billion from N46.3 billion. Total assets stood at N40.6 billion and retained earnings rose to N8.06 billion, from N3.4 billion a year earlier.
• The company reported a slightly different set of figures in its March audited filing, putting 2025 pre-tax profit at N7.8 billion, up 78.4%, and revenue at N65.5 billion, a 41.4% increase. IT Infrastructure Services led the revenue breakdown at N23.5 billion, followed by software at N21.3 billion and Managed Support Services at N18.7 billion.

Then, in May, 429.7 million CWG shares, representing about 17% of the company’s issued share capital, changed hands in a single off-market transaction valued at approximately N8.98 billion.

What you should know

Earlier this year, Nairametrics reported that CWG shareholders had approved a 70 kobo final dividend per share for 2025.

This represented a 79% increase from the 39 kobo paid in the previous year. The approval came at the company’s 21st Annual General Meeting in Lagos.

The higher payout followed a N7.8 billion pre-tax profit for 2025, up 78% from N4.42 billion in 2024, while revenue rose 41.4% from N46.35 billion to N65.56 billion.