Cube System (2335) Q1 2026 earnings summary

Executive summary

• IT investment demand remains robust, driven by DX promotion and cloud migration, with steady order levels maintained.

• Net sales rose 3.1% year-over-year to ¥4,546 million for the quarter ended June 30, 2025.

• Operating profit increased 82.6% year-over-year to ¥402 million, with margin improving from 5.0% to 8.9%.

• Ordinary profit grew 81.6% year-over-year to ¥412 million; profit attributable to owners of parent rose 27.1% to ¥200 million.

• End-User and Service Providing Businesses saw notable increases, while Sler Business remained stable.

Financial highlights

• Gross profit increased to ¥1,120 million from ¥886 million year-over-year; gross margin improved to 24.6% from 20.1%.

• Earnings per share improved to ¥13.30 from ¥10.47 year-over-year.

• Comprehensive income rose to ¥285 million from ¥226 million year-over-year.

• Total assets remained stable at ¥14,368 million as of June 30, 2025.

• Equity ratio was 75.5% as of June 30, 2025.

Outlook and guidance

• Full-year forecast: net sales ¥19,500 million, operating profit ¥1,750 million, profit attributable to owners of parent ¥1,220 million.

• Full-year net sales forecast up 6.3% year-over-year; operating profit forecast up 31.2%; profit attributable to owners forecast down 3.3%.

• Dividend forecast revised to ¥42.00 per share for the year ending March 31, 2026.

• First-half forecasts for operating income and subsequent items have been revised upward.

• Progress rates for 1Q: net sales 23.3%, operating profit 23.0%, profit attributable to owners of parent 16.4%.