NS Solutions (2327) Q2 2025 earnings summary

Executive summary

• 1H FY2024 revenue rose 8.2% YoY to ¥156.6bn, driven by strong cloud, software, and IT investment demand, especially in manufacturing and financial services.

• Operating profit increased 24% YoY to ¥18.1bn, with improved gross margin offsetting higher SG&A from human capital and technology investments.

• Profit attributable to owners surged 28.3% YoY to ¥12.2bn; comprehensive income rose 64.5% to ¥26.9bn.

• Interim dividends of 36.5 yen per share (POR 50.4%), up 16.5 yen YoY; annual dividend forecast raised to 73 yen.

• Sale of all Recruit Holdings shares completed, with proceeds supporting growth investments and the 'NSSOL 2030 Vision.'

Financial highlights

• Revenue: ¥156.6bn (+8.2% YoY); Operating profit: ¥18.1bn (+24% YoY); Profit before tax: ¥18.2bn (+21% YoY); EPS: 66.60 yen (stock split adjusted).

• Cash and cash equivalents surged by ¥88.3bn to ¥192.3bn, mainly from asset sales.

• Equity attributable to owners: ¥252.7bn; equity ratio: 63.2%.

• Order acceptance grew 19% YoY to ¥173.7bn, and order backlog rose 18% YoY to ¥172.6bn.

• Net cash provided by operating activities: ¥24.0bn; investing activities: ¥72.3bn, mainly from sale/redemption of financial assets.

Outlook and guidance

• FY2024 revenue forecast revised up to ¥333.0bn (+7.2% YoY), operating profit to ¥39.0bn (+11.4% YoY), and profit attributable to owners to ¥26.5bn (+10% YoY); EPS forecast at 144.83 yen (stock split adjusted).

• Full-year dividend forecast raised to ¥73 per share (POR 50.4%), up ¥30.5 YoY.

• The company targets early achievement of its medium-term plan and is formulating a new plan for FY2025–2027.