MEITEC (9744) Q4 2025 earnings summary

Executive summary

• Achieved record highs in both sales and profits for the fiscal year ended March 31, 2025, with consolidated net sales up 4.8% year-over-year, operating profit up 6.6%, and net profit up 3.2%, driven by strong orders in the Engineering Solutions Business and improved utilization ratios.

• The number of engineers assigned to clients increased, and working hours rose slightly, supporting higher utilization and profitability.

• Recruiting & Placement Business for Engineers also posted record sales and profits.

• Despite a ¥620 million impairment loss from suspending a large training facility, overall profitability increased.

Financial highlights

• Consolidated net sales: ¥133,068 million (+4.8% YoY); operating profit: ¥18,830 million (+6.6% YoY); net profit: ¥12,740 million (+3.2% YoY).

• Operating profit margin improved to 14.2% (+0.2pp YoY); profit margin at 9.6%.

• Return on equity (ROE) rose to 26.4% (+0.3pp YoY); ordinary profit to total assets ratio was 26.4%.

• Earnings per share rose to ¥165.01 from ¥158.01 year-over-year.

• Cash and cash equivalents at year-end were ¥53,005 million, up ¥260 million from the previous year.

Outlook and guidance

• FY2026 consolidated net sales forecast: ¥137,300 million (+3.2% YoY); operating profit: ¥19,700 million (+4.6% YoY); net profit: ¥13,400 million (+5.2% YoY).

• Growth rate expected to slow as engineer headcount remains largely unchanged; high utilization ratios anticipated.

• MEITEC Fielders expected to see a decrease in profit due to the end of a tax burden benefit.

• Forecast accuracy is lower due to economic uncertainty; forecasts will be revised as needed.