INES (9742) Q2 2026 earnings summary

Executive summary

• Net sales for the first half ended September 30, 2025, declined 11.5% year-over-year to ¥16,486 million, with losses recorded at all profit levels due to lower sales and higher project costs.

• Public sector sales dropped 18.1% and private sector sales fell 6.1%, mainly due to delays in local government system standardization and reduced finance system development.

• Operating loss was ¥920 million (vs. ¥876 million profit last year), ordinary loss ¥801 million (vs. ¥898 million profit), and net loss attributable to owners of parent was ¥601 million (vs. ¥537 million profit).

• Comprehensive income was negative ¥455 million, compared to ¥557 million positive in the prior year.

Financial highlights

• Gross profit fell to ¥2,199 million from ¥4,004 million year-over-year.

• Total assets decreased to ¥50,669 million from ¥56,727 million at the previous fiscal year-end.

• Net assets declined to ¥38,134 million, with an equity ratio of 75.3%.

• Cash and cash equivalents increased to ¥9,749 million at period-end, up from ¥7,673 million.

Outlook and guidance

• Full-year forecasts were revised downward: net sales now expected at ¥39,000 million (down 9.3% from previous forecast), operating profit at ¥1,400 million (down 65%), ordinary profit at ¥1,500 million (down 63.4%), and net profit at ¥1,000 million (down 64.3%).

• Annual dividend forecast was reduced from ¥60 to ¥55 per share.

• Management cites ongoing uncertainty due to geopolitical risks and rising raw material prices.