INES (9742) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, declined 10.4% year-over-year to ¥25,212 million, with both public and private sector sales falling due to delays in local government system standardization and reduced finance system development.

• Operating loss was ¥734 million, reversing from a ¥1,539 million profit in the prior year, mainly due to lower sales and higher project costs.

• Loss attributable to owners of parent was ¥465 million, compared to a profit of ¥998 million in the same period last year.

• The company is focusing on standardizing local government information systems, developing next-generation solutions, and expanding AI-related services.

Financial highlights

• Public sector sales dropped 14.2% year-over-year to ¥10,932 million; private sector sales fell 7.3% to ¥14,279 million.

• System development revenue declined 15.5%, system operation by 1.9%, and system maintenance by 2.0%.

• Gross profit decreased from ¥6,191 million to ¥3,833 million year-over-year.

• Comprehensive income was negative ¥299 million, compared to ¥1,109 million in the prior year.

Outlook and guidance

• Full-year net sales forecast is ¥39,000 million, down 3.9% year-over-year, with operating profit expected at ¥1,400 million (down 60.4%) and profit attributable to owners of parent at ¥1,000 million (down 59.0%).

• Dividend forecast remains unchanged at ¥55 per share for the fiscal year ending March 31, 2026.