INES (9742) Q2 2025 earnings summary

Executive summary

• First-half net sales fell 5.0% YoY to ¥18,631 million, while operating profit rose 2.4% to ¥876 million and profit attributable to owners of parent increased 13.5% to ¥537 million.

• FY2025 forecasts remain unchanged; municipal system standardization supported public-sector development, with projected cumulative sales unchanged despite a later-than-planned peak.

• The 2026 Medium-term Management Plan focuses on local government standardization, next-generation solutions and business foundation enhancement.

Financial highlights

• First-half gross profit was ¥4,004 million, down from ¥4,120 million; ordinary profit rose to ¥898 million from ¥890 million.

• Net income was ¥537 million, up 13.5% YoY; comprehensive income fell 9.0% to ¥557 million.

• Total assets were ¥52,366 million at September 30, 2024, down from ¥54,427 million at fiscal year-end; net assets rose to ¥37,850 million from ¥37,790 million.

Outlook and guidance

• FY2025 forecasts remain unchanged: revenue ¥44,000 million, gross profit ¥9,729 million, operating and ordinary income ¥4,000 million each, and net income ¥2,700 million.

• Full-year revenue is forecast to rise 8.5% YoY, operating profit 39.0%, and profit attributable to owners of parent 50.3%.

• Revenue mix is forecast at ~53% public and ~47% private; system development is expected to reach ~52% of service sales as standardization work expands.