Computer Engineering & Consulting (9692) Q4 2025 earnings summary

Executive summary

• Net sales, operating income, and ordinary income reached record highs, driven by strong DX and ICT demand, with growth in focus businesses, despite increased costs from growth investments.

• All business categories in the Digital Industry segment and focus businesses in Service Integration contributed to profit and sales growth.

• Net income attributable to owners of parent declined 11.0% year-over-year to ¥4,040 million, impacted by extraordinary losses from data center restructuring.

• The company completed a ¥3 billion treasury share acquisition and retirement to enhance capital efficiency.

Financial highlights

• Net sales rose 5.8% year-over-year to ¥56,208 million; operating income increased 5.3% to ¥6,696 million; ordinary income up 6.2% to ¥6,807 million.

• Gross profit increased to ¥15,344 million from ¥14,096 million year-over-year; gross profit margin improved by 0.8 points to 27.3%.

• Net income attributable to owners of parent declined 11.0% year-over-year to ¥4,040 million, with margin down 1.3 points to 7.2%.

• Orders received and outstanding order balance both reached record highs, led by strong ICT investment in manufacturing.

• Cash and cash equivalents at period end were ¥25,472 million, down ¥1,241 million from the previous year.

Outlook and guidance

• For FY ending January 2026, net sales are forecast to grow 7.6% to ¥60,500 million; operating income is expected to be flat at ¥6,780 million due to higher SG&A from growth investments.

• Net income is projected to rise 21.3% to ¥4,900 million, with a margin improvement to 8.0%.

• Segment sales growth is expected across Integration, Connected, and Solution segments, with cloud services targeted to reach 35% of sales.

• Annual dividend forecast for next year is ¥65 per share.

• New medium-term plan (2025–2027) focuses on growth, business reforms, and M&A.