ITOCHU Techno-Solutions (4739) Q1 2025 earnings summary

Executive summary

• Orders received, revenue, and all income items reached record highs for the first quarter of FY2024, with strong performance across multiple business domains.

• Revenue growth was driven by high demand from government, telecom, finance, and manufacturing sectors, as well as robust security and cloud projects.

• Strategic investments in cybersecurity and advanced materials platforms, along with initiatives to address workforce challenges, supported business expansion.

Financial highlights

• Revenue rose to ¥156.1 billion, up 17.8% year-over-year; gross profit increased 12.8% to ¥37.0 billion.

• Operating income grew 21.7% to ¥10.7 billion, with net profit attributable to shareholders up 21.4% to ¥7.7 billion.

• Orders received surged 28.9% to ¥174.5 billion; backlogs increased 15.5% to ¥461.9 billion.

Segment performance

• Enterprise: Orders and revenue increased, driven by flexible work solutions, security, and cloud migration projects.

• Retail and Service: Strong orders for ERP and POS renewals; revenue remained flat year-over-year.

• Telecommunication: Brisk orders and revenue from generative AI and telecom infrastructure projects.

• Regional & Social Infrastructure: Growth in network investments and DX projects for government and utilities.

• Financial Services: Strong orders and revenue from zero-trust and risk management projects.

• Others: Solid orders and revenue from semiconductor and overseas IT infrastructure projects.