DAIKO XTECH (8023) Q4 2025 earnings summary

Executive summary

• FY2025 revenue was ¥42.69bn, down 1.6% YoY; operating profit was ¥2.41bn, down 16.8%, and net income was ¥1.683bn, down 8.5%.

• Recurring business growth and modernization orders partly offset the roll-off of prior-year large PC and invoice-related demand; margins declined with the absence of large deals and special demand.

• Orders and revenue exceeded initial targets; operating profit and net income also surpassed forecasts of ¥2.2bn and ¥1.45bn, respectively.

Financial highlights

• Revenue was ¥42.69bn; gross profit was ¥10.556bn, down 5.0% YoY, and operating profit was ¥2.41bn, down 16.8%.

• Net income attributable to owners was ¥1.683bn, down 8.5%; EPS was ¥129.89 versus ¥139.85 a year earlier.

• Orders were ¥42.291bn, essentially flat YoY; backlog was ¥9.684bn, down 4.0%, adjusted for the stock-business aggregation method change.

• Gross margin was 24.7%, down 0.9 percentage points, and operating margin was 5.6%, down 1.1 points YoY.

• Net assets were ¥12.720bn and the equity ratio was 47.2%, up from 42.0%; year-end cash and equivalents were ¥10.452bn.

Outlook and guidance

• FY2026 forecast: revenue ¥43.0bn, gross profit ¥11.4bn, operating profit ¥2.45bn, net income ¥1.65bn and ROE 12.5%.

• FY2028 CANVAS TWO targets: revenue ¥45.0bn, gross profit ¥12.5bn, operating profit ¥3.0bn, operating margin 6.7%, net income ¥2.05bn and ROE 13.0%.

• FY2031 targets are revenue of ¥50.0bn and an 8.0% operating margin; priorities include software services, modernization and growth investment.

• The new three-year plan focuses on business transformation, value-added solutions and capital efficiency.