DAIKO XTECH (8023) Q2 2025 earnings summary

Executive summary

• Revenue increased 1.3% year-over-year to ¥20,827 million for the six months ended September 30, 2024, driven by strong sales of key solutions and high order backlog.

• Operating income declined 39.1% year-over-year to ¥849 million due to a lower gross margin from fewer high-margin large projects.

• Net income attributable to shareholders decreased 35.5% year-over-year to ¥569 million, reflecting higher tax expenses and lower profitability.

• The company continued to invest in human capital and digital transformation solutions, with a focus on expanding recurring revenue streams.

Financial highlights

• Revenue: ¥20,827 million (up 1.3% year-over-year).

• Operating income: ¥849 million (down 39.1% year-over-year).

• Ordinary income: ¥894 million (down 37.3% year-over-year).

• Net income attributable to shareholders: ¥569 million (down 35.5% year-over-year).

• EPS: ¥43.71 (down from ¥66.83 year-over-year).

Outlook and guidance

• Full-year revenue forecast: ¥41,000 million (down 5.5% year-over-year).

• Full-year operating income forecast: ¥2,200 million (up 24.1% year-over-year).

• Full-year net income forecast: ¥1,450 million (up 21.1% year-over-year).

• No change to previously announced guidance; management expects performance to track plan.