KSK (9687) Q4 2025 earnings summary

Executive summary

• Achieved record highs in revenue, operating profit, and net income for the fiscal year ended March 2025, with 13 consecutive years of revenue growth and 11 consecutive years of operating profit growth.

• Revenue increased 8.4% year-over-year to ¥23,608 million, with net income up 9.3% to ¥1,860 million.

• Growth driven by robust demand in DX, IoT, cloud, and AI-related markets, with continued investment in human capital and organizational resilience.

• All business segments posted higher sales and profits, with notable strength in network services and IT solutions.

Financial highlights

• Revenue increased by 8.4% year-over-year to ¥23,608 million.

• Operating profit rose 4.9% year-over-year to ¥2,419 million; ordinary income up 5.2% to ¥2,506 million.

• Net income grew 9.3% year-over-year to ¥1,860 million.

• Gross profit increased 7.9% to ¥5,690 million; comprehensive income reached ¥1,853 million.

• Cash and equivalents at year-end were ¥5,123 million, down ¥375 million from the prior year.

Outlook and guidance

• FY2026 revenue forecasted at ¥25,400 million (+7.6%), operating profit at ¥2,620 million (+8.3%), and net income at ¥1,970 million (+5.9%).

• Targeting ROE of 12% by FY2027.

• Dividend payout ratio to increase to 50% from FY2026, with FY2025 dividend at ¥124/share and FY2026 at ¥163/share.

• Management expects continued demand in IoT, cloud, AI, and cybersecurity, but notes macroeconomic and geopolitical risks.