COMSYS (1721) Q4 2025 earnings summary

Executive summary

• Net sales reached a record JPY 614.6 billion, up 7.6% year-over-year, with operating profit at JPY 45.9 billion (up 17.3%) and net profit at JPY 30 billion (up 9.6%), driven by strong orders in telecom, IT, and social infrastructure.

• Orders received hit a new high of JPY 638.8 billion, exceeding targets by 6.5%, with robust performance in social systems and IT segments.

• Business diversification advanced, with Carrier-Related, IT Solutions, and Social Systems-Related forming three core pillars.

• Operational agility was demonstrated through emergency infrastructure repairs and expansion into data center and fair management system projects.

• Management focused on productivity improvements via DX and sustainability initiatives.

Financial highlights

• Net sales: JPY 614.6 billion (record high, up 7.6% year-over-year).

• Operating profit: JPY 45.9 billion (record high, up 17.3%).

• Net profit: JPY 30 billion (record high, up 9.6%).

• Orders received: JPY 638.8 billion (record high, up 3.4%).

• Contract backlog: JPY 264.9 billion (record high, up 10%).

Outlook and guidance

• FY ending March 2026 guidance: JPY 650 billion in orders (+1.7%), JPY 620 billion in net sales (+0.9%), JPY 45 billion in operating profit (−2.2%), JPY 31 billion in profit attributable to owners (+3.1%), ROE of 8.2%.

• Dividend forecast to increase to JPY 120 per share; share buybacks planned at up to JPY 8 billion.

• Medium-term plan targets JPY 800 billion in net sales and JPY 60 billion in operating profit by FY ending March 2031.

• Focus on expanding orders in telecom, IT, and infrastructure, while monitoring geopolitical and market risks.

• Slight decrease in operating profit expected due to one-off items and upfront IT investment.