Integrated Design & Engineering (9161) Q2 2025 earnings summary

Executive summary

• Orders and revenue increased year-over-year, driven by strong Consulting, Energy, and Urban & Spatial Development segments.

• Core operating profit rose significantly, but operating profit declined 50.9% year-over-year due to a one-time ¥1.6 billion valuation loss on securities.

• Profit before tax and net income turned negative, mainly due to foreign exchange losses.

• Orders received increased 2.7% year-on-year to ¥67,674 million, led by strong Energy segment performance.

Financial highlights

• Orders: ¥67,674 million (+2.7% YoY); Revenue: ¥72,025 million (+6.2% YoY); Core operating profit: ¥2,219 million (+87.9% YoY).

• Operating profit: ¥1,063 million, down 50.9% year-over-year due to non-recurring losses.

• Net loss attributable to owners: ¥-1,179 million, compared to ¥313 million profit last year.

• Total assets: ¥220,586 million as of Dec 31, 2024, up ¥14,200 million from June 30, 2024.

• Cash and cash equivalents at period-end: ¥20,170 million, down from ¥25,242 million at previous year-end.

Outlook and guidance

• Targeting record-high orders, revenue, and core operating profit for FYE June 2025.

• Full-year revenue forecast: ¥165,000 million (+3.8% YoY); core operating profit forecast: ¥12,200 million (+1.4% YoY).

• Net income forecast: ¥7,300 million, down 24.6% year-over-year.

• Upfront investments planned in digital transformation and human resources.

• No year-end dividend planned for FYE June 2025, subject to tender offer completion.