KSK (9687) Q1 2025 earnings summary

Executive summary

• Revenue increased 8.3% year-over-year to ¥5,543 million for the first quarter, driven by robust demand in digital transformation, IoT, and cloud computing markets.

• Operating profit declined 49.3% year-over-year to ¥184 million due to higher personnel costs, including a one-time 50th anniversary bonus of ¥243 million and ongoing investments in human capital.

• Net income attributable to shareholders fell 46.2% year-over-year to ¥147 million, reflecting increased SG&A expenses and strategic investments.

• Despite profit declines, full-year guidance remains unchanged, with expectations for both revenue and profit growth over the prior year.

Financial highlights

• Gross profit decreased 7.8% year-over-year to ¥1,056 million, impacted by increased cost of sales and personnel investments.

• Ordinary profit dropped 46.1% year-over-year to ¥205 million.

• EPS for the quarter was ¥24.65, down from ¥45.89 in the same period last year.

• Comprehensive income was ¥178 million, a 46.6% decrease year-over-year.

Outlook and guidance

• Full-year revenue forecast is ¥23,400 million, up 6.8% year-over-year.

• Operating profit is projected at ¥2,400 million (+4.1%), ordinary profit at ¥2,480 million (+4.1%), and net income at ¥1,780 million (+4.6%).

• No changes to previously announced guidance.