Densan System Holdings Co (4072) Q4 2025 earnings summary

Executive summary

• Achieved 16th consecutive year of net sales growth, led by Google-related business and GIGA School projects, with all quarters hitting record highs year-over-year.

• Net sales rose 11.2% year-over-year to ¥68,131 million for the fiscal year ended December 31, 2025, with significant profit growth across all major metrics.

• Profit attributable to owners of parent increased 56.5% year-over-year to ¥2,896 million.

• Comprehensive income surged 81.3% year-over-year to ¥3,290 million.

• Significant profit recovery from prior year’s unprofitable projects, with strong YoY increases in operating and net income.

Financial highlights

• FY2025 net sales: ¥68,131 million (+11.2% YoY); operating profit: ¥3,624 million (+56.8% YoY); net income: ¥2,896 million (+56.5% YoY).

• Operating profit margin improved to 5.3% (+1.5pt YoY); ordinary profit margin at 5.6%.

• Gross profit improved to ¥11,014 million from ¥9,287 million year-over-year.

• Basic earnings per share rose to ¥271.06 from ¥173.88 year-over-year.

• Cash and cash equivalents at year-end were ¥17,581 million, up from ¥15,324 million.

Outlook and guidance

• FY2026 net sales forecast: ¥70.0 billion (+2.7% YoY); operating profit: ¥3.65 billion (+0.7% YoY); net income: ¥2.62 billion (−9.6% YoY) due to tax normalization.

• Basic earnings per share forecast at ¥244.11.

• Information Services segment expects steady demand for cloud and AI, but hardware sales to decline post-GIGA School peak.

• Payment Agency Services segment targets revenue growth but expects lower operating profit due to rising costs and investments.

• Mid-term plan revised: moderate growth in FY2026, with profit recovery expected from FY2027 as new investments yield results.