ISB (9702) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2025, rose 10.7% year-over-year to ¥27,719 million, driven by strong orders across Mobility, Business and Industrial, Enterprise, and Security categories, but operating profit declined 20.1% to ¥1,720 million and profit attributable to owners of parent dropped 38.9% to ¥946 million.

• Comprehensive income decreased 36.0% year-over-year to ¥1,008 million for the nine-month period.

• Profitability declined due to upfront investments for future growth and temporary expenses from unprofitable projects.

Financial highlights

• Gross profit increased to ¥6,435 million from ¥6,106 million year-over-year, while selling, general and administrative expenses rose to ¥4,714 million from ¥3,952 million.

• Basic earnings per share fell to ¥82.69 from ¥135.69 year-over-year.

• Total assets increased to ¥20,552 million as of September 30, 2025, up from ¥19,800 million at the previous year-end.

• Equity-to-asset ratio was 67.8% as of September 30, 2025.

• Full-year net sales forecast is ¥36,900 million, with operating profit forecast at ¥2,660 million and profit attributable to owners of parent of ¥1,690 million.

Outlook and guidance

• Steady progress toward full-year plan, with 75% of net sales and 65% of operating profit targets achieved by Q3.

• Full-year 2025 forecast projects net sales of ¥36,900 million (up 8.7% year-over-year), operating profit of ¥2,660 million (down 5.0%), and profit attributable to owners of parent of ¥1,690 million (down 16.9%).

• Basic earnings per share for the full year is forecast at ¥147.73.

• No revisions to previously announced earnings or dividend forecasts.

• Full-year profit guidance reflects continued investment and temporary cost impacts.