NS Solutions (2327) Q1 2025 earnings summary

Executive summary

• Revenue rose 11.7% year-over-year to ¥76.8 billion in FY2024 Q1, driven by strong cloud-based services, software product sales, and financial services.

• Operating profit increased 34% to ¥8.8 billion, and profit attributable to owners rose 34% to ¥5.4 billion.

• Comprehensive income reached ¥16.9 billion, up from ¥10.0 billion a year earlier.

• Order acceptance surged 39% year-over-year to ¥86.5 billion, and order backlog grew 19% to ¥165.2 billion.

• The company continues to focus on digital transformation (DX), AI solutions, and sustainability initiatives.

Financial highlights

• Gross profit increased to ¥18.7 billion from ¥16.1 billion year-over-year, with gross profit margin improving by 0.9 points to 24.4%.

• Operating profit margin improved to 11.5%, up 1.9 points year-over-year.

• Profit before tax climbed 31% to ¥9.0 billion.

• Basic earnings per share rose to 29.41 yen (post-stock split basis) from 21.99 yen.

• Cash and cash equivalents increased to ¥116.6 billion, up ¥12.6 billion from the previous year.

Outlook and guidance

• FY2024 full-year revenue forecast raised to ¥330.0 billion, up ¥19.4 billion year-over-year.

• Operating profit projected at ¥37.0 billion, up ¥2.0 billion from the previous year.

• Profit attributable to owners forecast at ¥25.2 billion.

• Basic earnings per share forecast for FY2025 is 137.73 yen (post-stock split basis).

• Dividend payout ratio target remains at 50%, with annual dividend forecast at 67 yen per share (post-split).