Cube System (2335) Q2 2027 earnings summary

Executive summary

• 1H FY Mar. 2027 net sales were nearly flat YoY as modernization growth was offset by fewer local-government projects; operating profit fell amid growth investment and unprofitable projects.

• Profitability improved in the End-User and Service-Providing businesses, while modernization, cloud migration and enhanced-security demand remained strong.

Financial highlights

• Net sales were ¥9,064 million, down 0.9% YoY; gross profit was ¥2,108 million versus ¥2,178 million a year earlier.

• Operating profit was ¥710 million, down 2.8%; ordinary profit was ¥704 million, down 4.5%; profit attributable to owners of parent was ¥515 million, down 7.1%.

• SG&A declined to ¥1,398 million from ¥1,447 million; comprehensive income was ¥340 million, down 32.3%.

Outlook and guidance

• FY Mar. 2027 outlook unchanged: net sales ¥20,000 million, operating profit ¥1,800 million, ordinary profit ¥1,810 million and parent-attributable profit ¥1,500 million.

• 1H progress against full-year outlook: sales 45.3%, operating profit 39.4%, ordinary profit 38.9% and parent-attributable profit 34.4%.

• FY2027 basic EPS forecast is ¥98.83; modernization, DX, cloud migration and cybersecurity demand are expected to remain strong amid changing client needs.