Cube System (2335) Q1 2025 earnings summary

Executive summary

• Net sales rose 0.8% year-over-year to 4,411 million yen, driven by project expansion in financial and energy sectors, despite a reduction in retail projects.

• Operating profit dropped 40.3% year-over-year to 220 million yen due to increased personnel expenses and upfront investments in development and overseas subsidiaries.

• Profit attributable to owners of parent fell 32.3% year-over-year to 157 million yen.

• Extraordinary income was posted from the sale of investment securities.

Financial highlights

• Net sales: 4,411 million yen (+0.8% YoY); Operating profit: 220 million yen (-40.3% YoY); Ordinary profit: 226 million yen (-38.9% YoY); Net profit attributable to owners: 157 million yen (-32.3% YoY).

• Gross profit for the quarter was 886 million yen, down from 938 million yen in the prior year.

• Operating margin declined to 5.0% from 8.5% a year earlier due to higher selling, general, and administrative expenses.

• Earnings per share for the quarter were 10.47 yen, compared to 15.36 yen a year earlier.

• Net assets per share at 657.73 yen; equity ratio at 73.8%.

Outlook and guidance

• Full-year net sales forecast unchanged at 18,800 million yen; operating profit forecast at 1,600 million yen.

• Full-year profit attributable to owners of parent is projected at 1,100 million yen, up 3.1% year-over-year.

• Progress rates for Q1: net sales 23.5%, operating profit 13.8%, net profit 14.3% of full-year targets.

• Dividend payout ratio to be raised from 40% to 50% for FYE2025.

• Dividend forecast for FY2025 is 40.00 yen per share, unchanged from the previous year.