Computer Engineering & Consulting (9692) Q1 2025 earnings summary

Executive summary

• Net sales rose 6.3% year-over-year in Q1 to ¥14,049 million, led by mobility, security, and robust ICT investment in both core and focus business areas.

• Operating income increased 4.2% year-over-year to ¥1,919 million, reaching 60.8% of the first-half target.

• Net income attributable to owners of parent grew 2.0% to ¥1,311 million, with comprehensive income up 22.9% year-over-year to ¥1,601 million.

• Both net sales and profits hit record highs despite higher expenses from growth investments.

• Orders received grew 6.3% year-over-year, with a 1.3% increase in outstanding order balance.

Financial highlights

• Q1 FY2025 net sales: ¥14,049 million (+6.3% YoY); operating income: ¥1,919 million (+4.2% YoY); net income per share: ¥1,311.

• Gross profit margin improved to 27.2% (+0.5pt YoY); gross profit for the quarter was ¥4,361 million, with a gross margin of 31.1%.

• Operating profit margin slightly decreased to 13.7% (-0.2pt YoY).

• Manufacturing and telecommunications sectors drove sales growth, while finance declined due to contract expirations.

• Total assets increased to ¥52,609 million, up ¥1,217 million from the previous fiscal year-end.

Outlook and guidance

• No change to full-year financial forecasts announced in March; full-year net sales forecast at ¥56,500 million (+6.4% YoY), operating income at ¥6,280 million (+1.3%), and net income at ¥4,300 million (+5.3%).

• Growth investments are progressing as planned, supporting the VISION2030 strategy.

• Management will update guidance if necessary.