Comture (3844) Q2 2025 earnings summary

Executive summary

• Achieved record highs in sales and earnings for the second quarter, marking 15 consecutive years of sales growth and 3 consecutive years of earnings growth, driven by digital transformation (DX) services, data management, AI platform businesses, and expansion in Microsoft, Salesforce, and ServiceNow segments.

• Acquisition of Human Interactive Technology Inc. contributed to higher earnings and operational capabilities.

• Continued investment in workforce development, including salary increases, expanded training, and recruitment of new graduates and experienced engineers.

Financial highlights

• Net sales rose 6.2% year-over-year to ¥17,794 million for the six months ended September 30, 2024, and 4.8% year-over-year to ¥18,652 million in 2Q FY3/26.

• Operating profit increased 4.7% year-over-year to ¥2,077 million; ordinary profit up 4.8% to ¥2,079 million.

• Interim net income attributable to owners of parent grew 9.6% year-over-year to ¥1,401 million; EPS up 9.6% to ¥43.95.

• EBITDA rose 6.3% year-over-year to ¥2,380 million.

• Total assets reached ¥24,060 million, with a capital adequacy ratio of 72.1%.

Outlook and guidance

• FY3/26 forecast targets net sales of ¥40,000 million (+10.1% YoY), operating profit of ¥5,000 million (+8.0% YoY), and net income of ¥3,325 million (+5.2% YoY).

• Full-year forecast for FY ending March 31, 2025: net sales of ¥37,700 million (+10.3% YoY), operating profit of ¥4,900 million (+6.5%), and profit attributable to owners of parent of ¥3,250 million (+3.7%).

• No revisions to previous guidance; aiming for 16th consecutive year of sales growth and 15th of earnings growth.

• Dividend per share forecasted at ¥50.00, payout ratio at 48.0%; annual dividend forecast raised to ¥48.00 per share.