Cube System (2335) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY March 2025 were ¥13,652 million, up 0.6% year-over-year, driven by growth in Digital and System Enhancement Businesses despite a decline in SI Business projects.

• Operating profit decreased 23.4% year-over-year to ¥890 million due to higher personnel expenses, investments in development, and unprofitable projects.

• Profit attributable to owners of parent rose 19.3% year-over-year to ¥904 million, aided by a gain from the revision of the retirement benefit plan.

• Earnings per share increased to ¥60.13 from ¥50.03 in the prior year period.

Financial highlights

• Gross profit for 3Q FY March 2025 was ¥2,884 million with a gross margin of 21.1%.

• Operating margin declined to 6.5% from 8.6% in the prior year.

• Ordinary profit was ¥894 million, down 23.5% year-over-year.

• Comprehensive income rose to ¥905 million from ¥743 million year-over-year.

• Orders received increased by 1.2% year-over-year to ¥13,394 million; order backlog rose 3.3% to ¥4,389 million.

• Total assets as of December 31, 2024, were ¥13,385 million, slightly down from ¥13,487 million as of March 31, 2024.

• Net assets increased to ¥10,257 million from ¥10,133 million at the previous fiscal year-end.

Outlook and guidance

• Full-year FY March 2025 net sales forecast is ¥18,300 million, with operating profit of ¥1,300 million and profit attributable to owners of parent at ¥1,210 million.

• Progress rates toward full-year forecasts as of 3Q: net sales 74.6%, operating profit 68.5%, profit attributable to owners of parent 74.8%.

• Earnings forecast was amended downward due to fewer high-profit projects and more unprofitable projects.

• Earnings per share for the full year is expected to be ¥80.40.

• Dividend forecast for the year ending March 31, 2025, is ¥40.00 per share.