ISB (9702) Q4 2025 earnings summary

Executive summary

• Net sales reached a record-high ¥37,020 million in FY2025, up 9% year-over-year, driven by digital transformation, financial, public, and security sectors.

• Operating profit was ¥2,314 million, down 17.3% year-over-year, due to temporary costs from unprofitable projects and growth investments.

• Profit attributable to owners of parent fell 29.4% to ¥1,435 million; comprehensive income decreased to ¥1,600 million.

• Formulated a new Medium- to Long-Term Business Plan 2030, focusing on capital cost awareness and enhanced shareholder returns.

Financial highlights

• Gross profit increased to ¥8,486 million, but operating margin declined to 6.3% from 8.2% year-over-year.

• Basic earnings per share dropped to ¥125.31 from ¥177.80 year-over-year.

• Dividend per share set at ¥55, with a payout ratio of 43.9%.

• Return on equity decreased to 10.2% from 16.1% year-over-year.

• Cash and cash equivalents at year-end were ¥9,078 million, up from ¥8,975 million.

Outlook and guidance

• FY2026 forecast: net sales of ¥38,500 million (+4.0%), operating profit of ¥3,000 million (+29.6%), and profit attributable to owners of parent of ¥1,850 million (+28.9%).

• Basic earnings per share projected at ¥161.40 for FY2026.

• Dividend forecast for FY2026 is ¥70 per share; Medium- to Long-Term Business Plan targets a payout ratio of 50%+ and minimum DOE of 4% by FY2030.