HIMACS (4299) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue rose 2.9% YoY to ¥4,454m; operating profit fell 22.0% to ¥235m, while ordinary profit declined 21.7% to ¥237m.

• Profit attributable to owners of parent fell 22.4% to ¥161m; comprehensive income decreased 25.4% to ¥151m.

• Solution services and end-user DX demand supported sales; full-year guidance remains ¥20,000m revenue and ¥1,820m operating profit.

Financial highlights

• Gross profit was ¥881m, down 3.7% YoY; SG&A rose 5.3% to ¥646m.

• Operating margin was 5.3%, down from 7.0%; net income margin was 3.6%, down from 4.8%.

• Revenue growth and improved pricing added ¥66m to operating profit, offset by ¥99m of higher subcontractor rates and personnel costs and ¥33m of higher SG&A, including talent investment.

• Basic EPS fell to ¥13.85 from ¥17.90 YoY.

• Equity-to-asset ratio improved to 82.8% from 81.6% at March 31, 2025; net assets per share decreased to ¥1,006.34 from ¥1,016.35.

Outlook and guidance

• FY2026 revenue is forecast at ¥20,000m, up 10.7%; operating profit at ¥1,820m, up 0.7%, and ordinary profit at ¥1,838m, up 0.9%.

• Net income is forecast at ¥1,245m, down 3.7%; EPS is forecast at ¥107.20, versus ¥111.59 in FY2025.

• Forecast operating and ordinary profit margins are 9.1% and 9.2%, respectively; net income margin is 6.2%.

• Q1 sales of ¥4,454m represented 22.3% progress toward the annual revenue plan.