INES (9742) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, decreased 8.6% year-over-year to ¥7,712 million, with declines in both public and private sectors.

• Operating loss widened to ¥878 million from ¥321 million year-over-year, and ordinary loss increased to ¥861 million from ¥304 million.

• Loss attributable to owners of parent was ¥618 million, compared to a loss of ¥275 million in the prior year period.

• The business environment remains favorable for digital transformation, but delays in local government system standardization and withdrawal from low-profit projects impacted results.

Financial highlights

• Public sector net sales fell 9.3% year-over-year to ¥3,093 million; private sector net sales dropped 8.1% to ¥4,618 million.

• System development sales declined 14.3%, while system operation sales rose 0.9% year-over-year.

• Gross profit decreased from ¥1,228 million to ¥766 million year-over-year.

• Comprehensive income was negative ¥585 million, compared to negative ¥230 million in the prior year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026, remains unchanged: net sales ¥43,000 million (+6.0% YoY), operating profit ¥4,000 million (+13.1%), ordinary profit ¥4,100 million (+13.6%), profit attributable to owners of parent ¥2,800 million (+14.9%), EPS ¥134.53.

• Annual dividend forecast raised to ¥60 per share.