Miroku Jyoho Service (9928) Q4 2025 earnings summary

Executive summary

• Net sales increased year-on-year, driven by strong ERP product sales, service revenues, and a shift to subscription-based models.

• Operating income and profit attributable to owners rose, supported by expanded customer base and DX consulting initiatives.

• Service revenues from stock-type business and cloud/subscription ARR saw double-digit growth.

• Announced Vision 2028 targeting 60 billion yen net sales and over 18% ROE by FY2028.

• Completed merger with MJS Finance & Technology Co., Ltd. in April 2025 to strengthen DX and fintech capabilities.

Financial highlights

• Net sales: ¥46,160 million (+5.0% year-on-year); gross profit: ¥27,876 million (gross margin 60.4%).

• Operating income: ¥6,287 million (+2.9%); ordinary income margin: 14.7%.

• Net income attributable to owners: ¥4,381 million (+3.4%); EPS: ¥146.40.

• Capital adequacy ratio improved to 64.6%; free cash flow turned positive.

• Cash and cash equivalents at year-end: ¥15,459 million, down due to investment activities.

Outlook and guidance

• FY2026 net sales forecast: ¥49,000 million (+6.2%); operating profit: ¥6,700 million (+6.6%); net income: ¥4,900 million (+11.8%).

• New SaaS-type ERP product to launch in second half of FY2026; focus on subscription and DX services.

• Dividend per share forecasted to increase to ¥60.00.

• Vision 2028 targets over 18% ROE and dividend payout ratio of 30–40%.

• Subscription sales ratio for major ERP products expected to reach 20% in FY2024.