INES (9742) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months ended December 31, 2024, decreased 3.0% year-over-year to ¥28,143 million, with operating profit up 31.8% to ¥1,539 million and profit attributable to owners of parent up 40.8% to ¥998 million.

• Public sector sales rose 1.7% due to standardization system introduction, while private sector sales fell 6.5% on lower insurance and retail system project orders.

• The company is executing its 2026 Medium-term Management Plan, focusing on local government system standardization, next-generation solutions, and business foundation enhancement.

Financial highlights

• Operating profit increased to ¥1,539 million (up 31.8% year-over-year), ordinary profit to ¥1,595 million (up 27.9%), and profit attributable to owners of parent to ¥998 million (up 40.8%).

• Comprehensive income for the period was ¥1,109 million, up 23.7% year-over-year.

• Gross profit margin improved as cost savings were realized, notably from the absence of prior year facility costs.

• Cash flows from operating activities increased to ¥3,184 million, while investing activities used ¥1,293 million and financing activities used ¥1,229 million.

Outlook and guidance

• Full-year forecast remains unchanged: net sales of ¥44,000 million (up 8.5% year-over-year), operating profit of ¥4,000 million (up 39.0%), ordinary profit of ¥4,000 million (up 46.4%), and profit attributable to owners of parent of ¥2,700 million (up 50.3%).

• Dividend forecast for the fiscal year ending March 31, 2025, is ¥55.00 per share.