Cresco (4674) Q4 2025 earnings summary

Executive summary

• Net sales rose 11.4% year-over-year to 58.76 billion yen, with operating profit up 16.8% to 5.98 billion yen and profit attributable to owners of parent up 18.2% to 4.41 billion yen.

• Achieved strong growth in net sales and profits, driven by robust IT investment demand, new consolidations, and the launch of new generative AI and digital transformation services.

• Implemented organizational restructuring, completed several M&A activities, and launched a new Medium-Term Management Plan targeting 70 billion yen in sales, 11.5% operating margin, and 15% ROE by FY2026.

Financial highlights

• Net sales rose 11.4% year-over-year to 58.76 billion yen, exceeding the initial forecast.

• Operating profit increased 16.8% year-over-year to 5.98 billion yen; ordinary profit up 11.2%.

• Gross profit increased to 11.78 billion yen from 10.34 billion yen year-over-year.

• EPS for the year was 106.89 yen, reflecting strong profitability.

• Cash and cash equivalents at year-end increased by 380 million yen to 15.24 billion yen.

Outlook and guidance

• FY3/2026 net sales forecast at 64.0 billion yen, operating profit at 7.0 billion yen, and EPS at 118.82 yen.

• Dividend payout ratio to increase to 50% from FY3/2026, with a full-year dividend forecast of 58 yen per share.

• Share buyback program up to 1,000,000 shares or 1.5 billion yen announced.

• Management expects continued DX investment and steady order growth despite macroeconomic uncertainties.