COMSYS (1721) Q2 2026 earnings summary

Executive summary

• Net sales for the first half ended September 30, 2025, reached a record ¥270.3 billion, up 2.3% year-over-year, with operating profit up 9.7% to ¥18.0 billion and net profit attributable to owners up 16.7% to ¥12.6 billion.

• Orders received declined 1.3% year-over-year to ¥321.5 billion, but contract backlogs rose 4.6% to ¥316.1 billion, indicating a healthy pipeline and underlying performance exceeding internal targets.

• Strong execution in NTT-commissioned mobile projects and IT solutions offset declines in social systems-related business.

• Operational efficiency, in-housing, and digital transformation efforts drove profit growth, with comprehensive income up 64.3% year-over-year to ¥15,841 million.

• Dividend payout and treasury share buyback were both increased, with a major share cancellation planned by March 2026.

Financial highlights

• Net sales: ¥270.3 billion, representing 43.6% of the full-year target and a new first-half record.

• Operating profit: ¥18.0 billion, up ¥1.5 billion year-over-year; ordinary profit rose 9.5% to ¥18,832 million.

• Net profit: ¥12.6 billion, with EPS for the period at ¥108.10, up from ¥91.10 in the prior year.

• Gross profit margin improved to 13.8% in the first half, up 0.6 percentage points year-over-year.

• Progress rates toward full-year targets: net sales at 43.6%, operating profit at 40.1%, and net profit at 40.8%.

Outlook and guidance

• Full-year forecasts for net sales, operating profit, and net profit remain unchanged at ¥620.0 billion, ¥45.0 billion, and ¥31.0 billion, respectively.

• First-half progress rates suggest the company is on track to meet annual goals, but timing uncertainties in project completion persist.

• Sustained demand expected from NTT Docomo's 5G base station expansion, optical fiber, and data center projects.

• Data center-related projects expected to grow beyond ¥50 billion in orders and ¥32 billion in sales for the fiscal year.

• Management notes that actual results may differ materially from forecasts due to various factors.