Net One Systems (7518) Q3 2025 earnings summary

Executive summary

• Order intake, sales, and operating profit reached record highs for Q1-3, driven by strong demand for ICT infrastructure upgrades, security, and cloud utilization.

• Net sales for the nine months ended December 31, 2024, rose 8.7% year-over-year to ¥155,396 million, with operating profit up 18.3% to ¥14,314 million and profit attributable to owners of parent up 20.5% to ¥9,567 million.

• Earnings per share increased to ¥120.60 from ¥97.65 year-over-year, reflecting improved profitability.

Financial highlights

• Order intake for Q1-3 was ¥156.7bn, up 22.1% year-over-year; sales were ¥155.4bn, up 8.7%; operating profit was ¥14.3bn, up 18.3%.

• Net income attributable to shareholders was ¥9.6bn, up 20.5% year-over-year; EPS was ¥120.60, up 23.5%.

• Gross profit increased to ¥40,033 million from ¥37,027 million year-over-year, while SG&A expenses rose to ¥25,719 million.

• Q3 (Oct–Dec) order intake rose 31.6% year-over-year; sales increased 9.7%; operating profit declined 6.9% due to lower gross margin and higher personnel costs.

• Special items: Q2 included ¥0.49bn gain from sale of provider-independent addresses; Q3 included ¥0.74bn TOB-related expense.

Segment performance

• Enterprise: Q1-3 sales up 15.2% year-over-year, operating profit up 44.8%; strong in finance and manufacturing, slight weakness in non-manufacturing.

• Telecom: Q1-3 sales up 6.6%, operating profit down 2.2%; large projects in co-creation business, but gross margin declined.

• Public: Q1-3 sales up 7.6%, operating profit up 75.7%; multiple large DX projects for municipalities, improved pricing.

• Partner: Q1-3 sales up 4.2%, operating profit down 13.5%; prior year benefited from one-time profit and FX gains.