Daiwabo Holdings (3107) Q3 2025 earnings summary

Executive summary

• Achieved record-high net sales for the 3rd quarter, driven by strong IT demand, especially for PC replacements and Windows upgrades.

• Both sales and profits grew robustly in corporate, government, and education sectors.

• Upward revision of full-year net sales and operating income forecasts for FY ending March 2025.

• The Fiber Business was excluded from consolidation after an 85% share transfer in March 2024.

• Completed approximately ¥10 billion treasury share acquisition by December 2024.

Financial highlights

• 3Q FY2025 net sales: ¥808.8 billion (+19.8% YoY); operating income: ¥22.0 billion (+16.4% YoY); ordinary income: ¥22.4 billion (+17.1% YoY).

• Profit attributable to owners of parent: ¥15.4 billion (vs. ¥-4.2 billion YoY, which included a large impairment loss).

• Gross profit margin: 6.7% (down from 8.0% YoY); operating income margin: 2.7%.

• 3Q progress rates: net sales 70.8%, operating income 63.8% of full-year revised forecast.

• Total assets increased to ¥424.0 billion; equity capital ratio at 33.3%.

Outlook and guidance

• Full-year FY2025 net sales forecast revised to ¥1,142.5 billion (+18.1% YoY); operating income to ¥34.5 billion (+11.4% YoY).

• Profit attributable to owners of parent forecast at ¥23.9 billion (+458.0% YoY); full-year EPS forecast is ¥260.71.

• Dividend per share forecast: ¥90 (interim ¥45, term-end ¥45).

• 4Q IT Infrastructure Distribution sales expected to rise 21.3% YoY, with continued strong demand for Windows 10 EOS and SME upgrades.

• Operating income margin for 4Q forecast to remain stable despite competitive pressures and yen depreciation.