Avant Group (3836) investor relations material

Executive summary

• Net sales rose 15.6% year-over-year to ¥28,227 million, marking the 15th consecutive annual increase, with all business segments contributing to growth despite a project cancellation in the DX Promotion Business.

• Operating profit increased 12.3% year-over-year to ¥4,604 million, driven by higher sales and improved margins in the software business, despite higher personnel, IT, and outsourcing costs.

• Net profit surged 20.5% year-over-year to ¥3,434 million, supported by operating profit growth and gains on sales of investment securities.

• All segments—Consolidated Financial Disclosure, Digital Transformation Promotion, and Management Solutions—achieved sales and profit growth.

• Strategic investments and a focus on software gross profit are central to the medium-term plan, with recurring sales and a high ROE maintained above 20%.

Financial highlights

• Gross profit increased 15.1% year-over-year to ¥12,578 million, with a gross profit margin of 44.6%.

• EBITDA rose 10.1% year-over-year to ¥5,110 million; EBITDA margin was 18.1%.

• Operating cash flow for the year reached ¥4,469 million, up from ¥3,680 million the previous year.

• Net assets increased to ¥15,597 million, with an equity ratio of 63.9%.

• Cash and cash equivalents at year-end were ¥15,162 million, up ¥3,185 million from the prior year.

Outlook and guidance

• For FY2026, net sales are forecast to rise 18.0% to ¥33,300 million, operating profit to increase 10.8% to ¥5,100 million, and net profit to grow 1.9% to ¥3,500 million.

• Dividend per share is projected at ¥32, with a DOE target of 7.0%, aiming for 8% within the medium-term plan.

• Medium-term plan focuses on strengthening the software business and continued growth investments.

• The company continues to prioritize investments in software and human capital to drive future growth.