NTT (9432) investor relations material

Executive summary

• Operating revenues, EBITDA, and operating profit reached record highs in FY2025, driven by enterprise, Smart Life, and digital business growth, as well as data center transfers to REITs.

• FY2026 forecasts project further increases in operating revenues and operating profit, but a decline in net profit due to higher interest expenses and other factors.

• Dividends are set to increase for the 16th consecutive year, with a new share buyback program up to ¥200 billion announced.

• Major strategic moves included the acquisition of SBI Sumishin Net Bank and making NTT DATA Group a wholly owned subsidiary, accelerating digital and financial business expansion.

• Strategic focus is on AI-driven growth, infrastructure transformation, and value-added services through 2030.

Financial highlights

• FY2025 operating revenues: ¥14,409.1B (+5.1% YoY); EBITDA: ¥3,423.3B (+5.7% YoY); operating profit: ¥1,706.2B (+3.4% YoY); net profit: ¥1,037.0B (+3.7% YoY).

• FY2026 forecast: operating revenues ¥15,060.0B (+¥650.9B YoY); EBITDA ¥3,430.0B (+¥6.7B YoY); operating profit ¥1,710.0B (+¥3.8B YoY); net profit ¥980.0B (−¥57.0B YoY).

• Cash and cash equivalents at FY2025 year-end: ¥1,921.9B.

• Annual dividend per share increased to ¥5.30, with a payout ratio of 43.5%.

• Total assets increased to ¥46,721.3B, mainly due to the consolidation of SBI Sumishin Net Bank.

Outlook and guidance

• FY2026 targets further growth in operating revenues and profits, led by Integrated ICT and Global Solutions, despite ongoing negative impact from declining network revenues.

• Net profit is expected to decline due to increased interest payments.

• Medium-term EBITDA target revised to ¥4 trillion by FY2030, with a focus on AI and value-added areas.

• ROIC (excluding financial business) targeted to improve to 5.5% by 2030.

• Dividend forecast for FY2027 is ¥5.40 per share, with a payout ratio of 44.6%.