NS Solutions (2327) Q1 2026 earnings summary

Executive summary

• Revenue for the three months ended June 30, 2025 rose 7.6% year-over-year to ¥82.7bn, driven by strong demand for digital transformation, cloud solutions, and increased sales to manufacturing, Nippon Steel Group, and retail sectors.

• Gross profit increased to ¥21.0bn, up 12% year-over-year, with gross profit margin improving to 25.4%.

• Operating profit declined 3.7% year-over-year to ¥8.5bn due to higher expenses from business model transformation and the absence of prior year one-time gains.

• Profit attributable to owners of parent decreased 5.0% year-over-year to ¥5.1bn.

• The company completed the acquisition of INFOCOM CORPORATION and PT.WCS ABYAKTA NAWASENA, expanding its IT services and ERP offerings.

Financial highlights

• Revenue rose to ¥82.7bn, up 8% year-over-year.

• Gross profit increased to ¥21.0bn from ¥18.7bn year-over-year.

• Operating profit was ¥8.5bn, down 4% year-over-year, with an operating margin of 10.3%.

• Basic earnings per share were 27.93 yen, down from 29.41 yen year-over-year (adjusted for a 2-for-1 stock split effective July 1, 2024).

• Total assets decreased to ¥381.4bn from ¥421.3bn at the previous fiscal year-end.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥357.0bn, up 6% year-over-year.

• Operating profit for FY2025 is projected at ¥43.0bn, up 12% year-over-year, with an operating margin of 12.0%.

• Profit attributable to owners is forecast at ¥29.2bn, up 8% year-over-year.

• Basic earnings per share forecast is 159.59 yen for the full year.

• No revisions have been made to the previously announced forecast.