COMSYS (1721) Q4 2026 earnings summary

Executive summary

• Orders received reached ¥685.6 billion, up 7.3% year-over-year, with record highs in net sales, operating profit, and net profit, driven by strong telecom, IT solutions, and social infrastructure demand.

• Net sales rose 2.6% year-over-year to ¥630.6 billion, with IT solutions and social systems-related businesses now accounting for over half of total sales.

• Operating profit grew 10.7% year-over-year to ¥50.9 billion, with an operating margin of 8.1%, and profit attributable to owners of parent increased 20.7% to ¥36.3 billion.

• Strategic initiatives included business expansion in Indonesia, launch of next-gen data center services, establishment of a Generative AI Center, and enhanced corporate governance with a majority of independent outside directors.

• Enhanced shareholder returns through a dividend increase to ¥130 per share and expanded share buybacks up to ¥11 billion.

Financial highlights

• Orders received: ¥685.6 billion (+7.3% YoY); net sales: ¥630.6 billion (+2.6% YoY); operating profit: ¥50.9 billion (+10.7% YoY); profit attributable to owners: ¥36.3 billion (+20.7% YoY).

• Gross profit margin improved to 14.8% from 13.7% YoY; operating margin rose to 8.1% from 7.5%.

• Dividend per share increased to ¥130.00, with a payout ratio of 69.1%.

• Share buybacks increased to ¥11 billion for the fiscal year.

• Cash and cash equivalents at year-end: ¥41,333 million (+8.4% YoY).

Outlook and guidance

• FY2027 targets: orders received ¥720.0 billion (+5.0%), net sales ¥670.0 billion (+6.2%), operating profit ¥54.0 billion (+6.1%), profit attributable to owners ¥37.8 billion (+4.3%).

• Margins expected to dip temporarily due to upfront DX investments and higher shared costs, with recovery anticipated as IT solutions and social systems scale.

• ROE guidance held flat for now, with a medium-term target above 10%.

• Continued focus on telecom, IT solutions, and social infrastructure, with emphasis on DX and sustainability.