Computer Engineering & Consulting (9692) Q3 2025 earnings summary

Executive summary

• Net sales rose 5.0% year-over-year to ¥41,223 million, driven by strong ICT investment and performance in both core and focus areas.

• Operating income declined 3.0% year-over-year to ¥4,794 million due to increased SG&A expenses, including growth investments.

• Net income attributable to owners of parent decreased 3.9% year-over-year to ¥3,277 million.

• Orders received grew 5.6% year-over-year, and the outstanding balance of orders increased 2.5%, both setting new record highs.

• The Board approved acquisition and retirement of up to ¥3 billion in treasury shares to improve capital efficiency.

Financial highlights

• Gross profit increased 6.6% year-over-year to ¥11,090 million, with gross margin up 0.4pt to 26.9%.

• Operating income margin fell 1.0pt to 11.6%; ordinary income decreased 3.0% to ¥4,820 million.

• Net income attributable to owners of parent declined 3.9% year-over-year to ¥3,277 million, with margin down 0.7pt to 8.0%.

• Comprehensive income for the quarter was ¥3,639 million, up from ¥3,456 million year-over-year.

• 73.0% of full-year net sales and 76.3% of full-year operating income targets achieved by Q3.

Outlook and guidance

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

• Operating income is projected at ¥6,280 million, down 1.3% year-over-year; net income attributable to owners of parent is forecast at ¥3,700 million, down 18.5%.

• Year-end dividend forecast maintained at ¥30 per share; total annual dividend at ¥55 per share.

• Full-year net income forecast revised downward to ¥3,700 million (6.5% margin) due to extraordinary loss from data center reorganization.