MEITEC (9744) Q4 2026 earnings summary

Executive summary

• Sales and profit reached record highs, driven by strong client demand in technological development and robust Engineering Solutions performance, despite a slight decrease in engineer headcount and working hours.

• Profit exceeded forecasts due to a gain on sale of previously impaired real estate, with extraordinary income of ¥637 million recognized from asset sales.

• The Recruiting & Placement Business for Engineers saw declines in sales and profit but maintained a high operating margin.

• The economic outlook remained uncertain due to international instability, but utilization ratios for engineers stayed high, supporting core business performance.

Financial highlights

• Group consolidated net sales rose 3.5% year-over-year to ¥137.7 billion, with operating profit up 5.7% to ¥19.9 billion.

• Profit attributable to owners of parent increased 18.1% year-over-year to ¥15.1 billion, with profit margins improving to 10.9%.

• Return on equity (ROE) climbed to 30.9%, up 4.5 points year-over-year.

• Operating profit margin improved to 14.5% from 14.2% year-over-year.

• Earnings per share increased to ¥194.96 from ¥165.01 year-over-year.

Outlook and guidance

• FY2027 net sales are forecast to reach ¥140.8 billion (+2.3% YoY), with operating profit expected at ¥20.5 billion (+3.0% YoY).

• Profit attributable to owners of parent is projected to decrease by 7.7% to ¥13.9 billion due to the end of extraordinary income and tax changes.

• Dividend per share is forecast at ¥181, reflecting a reduction in line with lower profit.

• Management notes high uncertainty in the economic outlook and will revise forecasts as needed based on utilization ratios.

• Recruitment difficulties are expected to slow growth, despite robust demand.