Business Brain Showa-Ota (9658) Q3 2026 earnings summary

Executive summary

• Achieved significant year-over-year growth in all major financial categories for 3Q FY2025, rebounding from a weak prior year, especially in the first quarter.

• Revenue for the nine months ended December 31, 2025, increased 10.0% year-over-year to ¥31,106 million, driven by growth in consulting, system development, and BPO & managed services.

• Business profit rose 11.6% year-over-year to ¥2,452 million, and operating profit increased 11.2% to ¥2,445 million.

• Orders received totaled ¥30,562 million (up 5.5% year-over-year), with a backlog of ¥12,454 million (up 2.9%).

• Progress toward medium-term management plan (BBS2026) targets is steady, with revenue and profit tracking above 73% of full-year forecasts.

Financial highlights

• 3Q FY2025 cumulative revenue: ¥31,106 million, up from ¥28,291 million year-over-year.

• 3Q FY2025 cumulative business profit: ¥2,452 million, up from ¥2,197 million year-over-year.

• Gross profit increased 7.5% year-over-year to ¥6,920 million, despite higher subcontract expenses.

• Basic earnings per share for the nine months was ¥189.92, up from ¥168.66 year-over-year.

• Total assets as of December 31, 2025, were ¥46,866 million, up ¥1,544 million from March 31, 2025.

Outlook and guidance

• No change to full-year FY2025 forecast: revenue ¥42,600 million, business profit ¥3,300 million.

• Full-year revenue forecast for fiscal year ending March 31, 2026, is ¥42,600 million, up 9.8% year-over-year.

• Business profit and operating profit are both forecast at ¥3,300 million, up 14.9% year-over-year.

• Profit attributable to owners of parent is projected at ¥2,560 million, up 3.7% year-over-year.

• BBS2026 targets include 10% annual sales growth (including M&A), 8.5% business profit margin, and 23.5% BPO sales ratio.