Cresco (4674) investor relations material

Executive summary

• Net sales for the quarter rose 10.6% year-over-year to ¥16,682 million, driven by IT services expansion, generative AI demand, and new subsidiary consolidations.

• Operating profit increased 13.3% to ¥1,149 million, and net profit attributable to owners of parent rose 14.6% to ¥864 million, supported by fewer unprofitable projects and higher sales.

• Comprehensive income increased 30.4% year-over-year to ¥1,740 million for the quarter.

• New orders rose 12.3% year-over-year, with outstanding orders up 5.1%, reflecting robust demand despite macroeconomic and geopolitical risks.

• Reorganized Market Development Unit and added Officemation Co., Ltd. as a subsidiary to strengthen manufacturing and Nagoya region presence.

Financial highlights

• Gross profit for the quarter was ¥3,108 million, up from ¥2,744 million year-over-year.

• Operating profit: ¥1,149 million (up 13.3% YoY); ordinary profit: ¥1,254 million (up 13.3% YoY); net profit: ¥864 million (up 14.5% YoY).

• EPS: ¥21.46 (up from ¥18.33 YoY).

• Equity-to-asset ratio stood at 70.5% as of June 30, 2026.

• Total assets were ¥47,443 million, with net assets at ¥33,425 million as of June 30, 2026.

Outlook and guidance

• No change to full-year and half-year earnings forecasts for FY ending March 2027.

• Full-year forecast: net sales ¥71,500 million, operating profit ¥8,000 million, net profit ¥5,530 million, EPS ¥137.76.

• Dividend target for FY2027 set at ¥80 per share, including a ¥10 commemorative dividend for the 30th anniversary of listing.

• Ongoing share buyback program up to 1,000,000 shares or ¥2.0 billion.