Computer Engineering & Consulting (9692) Q2 2025 earnings summary

Executive summary

• Net sales for the first half rose 4.3% year-over-year to ¥27,570 million, driven by steady ICT investment and growth in both core and focus business areas.

• Operating income declined 7.8% year-over-year to ¥3,250 million due to higher growth-related expenses and a drop from last year's large projects.

• Net income attributable to owners fell 9.7% year-over-year to ¥2,213 million.

• Board resolved to acquire and extinguish up to ¥3 billion in treasury stock by December 2024 to enhance capital efficiency and shareholder returns.

Financial highlights

• Gross profit increased to ¥7,438 million from ¥7,161 million year-over-year.

• Cash and cash equivalents at period-end were ¥26,265 million, down ¥449 million from the previous year-end.

• Total assets rose to ¥52,439 million, up ¥1,048 million from the previous fiscal year-end.

• Net assets increased to ¥41,561 million, mainly due to higher retained earnings and valuation gains on securities.

Outlook and guidance

• Full-year net sales forecast at ¥56,500 million, up 6.4% year-over-year.

• Operating income projected at ¥6,280 million (down 1.3% year-over-year), and net income at ¥4,300 million (down 5.3%).

• No changes to previously announced forecasts; revisions will be disclosed if necessary.