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CWG Plc recorded a sharp increase in revenue from its IT Infrastructure Services business in the first half of 2026, with the segment generating ₦15.5 billion, up 142.4% from ₦6.4 billion recorded in the corresponding period of 2025.
The strong performance made IT infrastructure the company’s fastest-growing major revenue line during the six months ended June 30, 2026, helping total group revenue rise to ₦44.4 billion, compared with ₦36.8 billion a year earlier.
Infrastructure Becomes Major Revenue Driver
CWG’s H1 revenue came from four principal business segments.
Software remained the largest contributor at ₦18.7 billion, although revenue from the segment declined 6.3% from ₦20 billion in H1 2025.
IT Infrastructure Services followed with ₦15.5 billion, accounting for approximately 35% of total group revenue. Managed and Support Services contributed about ₦9.6 billion, while the Platform Business generated ₦618 million.
The infrastructure segment therefore accounted for much of the ₦7.6 billion increase in CWG’s overall revenue, more than offsetting the contraction in software income.
Revenue Growth Outpaces Profit Expansion
Despite the significant increase in revenue, profitability grew at a considerably slower pace.
CWG’s cost of sales climbed 24.2% to ₦35.3 billion, exceeding the 20.8% growth in revenue.
As a result, gross profit increased by only 9% to ₦9.1 billion, while gross margin narrowed from 22.6% to 20.4%.
Profit after tax rose a modest 2.4% to ₦3.65 billion, from ₦3.56 billion in H1 2025.
Operating expenses also increased by 13.6% to ₦4.24 billion, limiting operating profit growth to 2.2%, at ₦4.85 billion. EBITDA increased 3.4% to ₦5.11 billion.
Hardware-Led Growth Pressures Margins
The changing revenue mix is central to the difference between CWG’s top-line and bottom-line growth.
The company’s IT Infrastructure Services business is heavily linked to OEM hardware reselling, which generally carries lower margins than software.
Consequently, the rapid expansion of infrastructure revenue has boosted turnover but has not translated into a similar increase in profitability.
The trend marks a shift in CWG’s earnings structure, with infrastructure growing rapidly even as software revenue contracts.
What IT Infrastructure Services Covers
CWG’s infrastructure business provides the underlying technology systems organisations require to operate their digital operations.
Its services include data-centre facilities management, power and cooling systems, disaster recovery, network design and installation, WAN and LAN solutions, firewall management, intrusion detection and prevention, security audits, data backup, recovery and storage.
The segment has recorded significant growth in recent years.
Revenue increased from ₦11.7 billion in 2023 to ₦12.8 billion in 2024, before almost doubling to ₦24 billion in 2025.
The company’s ₦15.5 billion H1 2026 performance already represents roughly 65% of its full-year 2025 infrastructure revenue, indicating that the segment is becoming increasingly important to CWG’s overall business.
Working Capital Requirements Rise
The expansion has also increased CWG’s working-capital requirements.
Project-related prepayments rose sharply from ₦1.6 billion to ₦7.5 billion during the period, while accrued income stood at approximately ₦9.5 billion.
The movement reflects the financial requirements associated with executing larger infrastructure projects and contracts.
Debt Falls to Almost Zero
CWG’s financial position nevertheless strengthened during the period.
Borrowings fell dramatically from ₦4.6 billion at the end of 2025 to just ₦6 million by June 2026, effectively leaving the company with negligible debt.
The technology company also paid ₦1.77 billion in dividends during the first half, compared with ₦985 million in H1 2025.
Meanwhile, contract liabilities increased from ₦2.5 billion to ₦4.1 billion, which could represent revenue from software or Software-as-a-Service contracts that will be recognised in subsequent periods.
Strong 2025 Performance Sets the Base
The H1 results build on CWG’s strong performance in 2025.
In February, the company reported ₦8.01 billion in profit before tax for 2025, representing an 81.36% increase from ₦4.4 billion in 2024. Revenue climbed to ₦65.6 billion from ₦46.3 billion.
However, figures contained in its subsequent March audited filing showed slightly different numbers, putting 2025 profit before tax at ₦7.8 billion, up 78.4%, and revenue at ₦65.5 billion, representing 41.4% growth.
The audited filing put IT Infrastructure Services revenue at ₦23.5 billion, ahead of software at ₦21.3 billion and Managed Support Services at ₦18.7 billion.
Infrastructure Now at the Centre of CWG’s Growth Story
CWG’s latest performance points to an increasingly infrastructure-led business model.
While software remains its largest revenue contributor in H1 2026, the explosive growth in infrastructure services is reshaping the company’s revenue mix and becoming a central driver of expansion.
The challenge for CWG will be converting that rapid top-line growth into stronger margins, particularly given the lower profitability typically associated with hardware-led infrastructure projects.
For now, the company’s combination of rising infrastructure demand, declining debt and continued dividend payments provides a strong foundation, even as the slower growth in profit highlights the cost of its changing business mix.
