MEITEC (9744) Q3 2025 earnings summary

Executive summary

• Net sales increased by 5.1% year-over-year to ¥100,398 million, driven by strong orders from major manufacturing clients and improved engineer utilization rates.

• Operating profit rose 6.2% year-over-year to ¥15,212 million, while ordinary profit grew 6.4% to ¥15,253 million.

• Profit attributable to owners of parent was ¥9,801 million, nearly flat year-over-year due to impairment losses recorded in the previous quarter, including a ¥620 million loss from suspending a large training facility.

• Engineering Solutions Business saw both net sales and operating profit rise, driven by higher engineer assignments and utilization.

• Recruiting & Placement Business for Engineers experienced a slight decline in net sales but improved operating profit due to efficiency gains.

Financial highlights

• Net sales reached ¥100,398 million, up ¥4,901 million (+5.1%) year-over-year.

• Operating profit was ¥15,212 million, up ¥885 million (+6.2%) year-over-year.

• Ordinary profit rose 6.4% to ¥15,253 million; profit attributable to owners of parent was ¥9,801 million, essentially flat year-over-year.

• Gross profit increased to ¥28,052 million from ¥26,619 million year-over-year.

• Basic earnings per share for the period was ¥126.95, compared to ¥125.11 in the prior year.

Outlook and guidance

• Net sales and operating profit are tracking at 75.3% and 83.6% of full-year forecasts, respectively, as of the third quarter.

• Full-year forecast for FY ending March 31, 2025: net sales of ¥133,300 million (+5.0% YoY), operating profit of ¥18,200 million (+3.1%), ordinary profit of ¥18,300 million (+3.6%), and profit attributable to owners of parent of ¥11,900 million (-3.6%).

• Earnings per share forecast for the full year is ¥154.13.

• Management notes that actual results may differ from forecasts due to various business risks and uncertainties.