NS Solutions (2327) Q3 2025 earnings summary

Executive summary

• Revenue for FY2024 3Q rose 9.2% year-over-year to ¥240.3 billion, with operating profit up 27% to ¥29.6 billion and profit attributable to owners up 32% to ¥20.4 billion, driven by strong cloud, software, manufacturing, Nippon Steel, and financial services sales.

• Growth was supported by newly consolidated subsidiaries, including the acquisition of TEXENG SOLUTIONS CORPORATION (renamed NS Solutions BizTech Corporation), which contributed ¥3,747 million in revenue and ¥437 million in profit since April 2024.

• The company advanced digital transformation (DX) initiatives, expanded its product and service lineup, and strengthened AI and sustainability offerings.

• Order acceptance increased 17% year-over-year, and order backlog at the end of 3Q was up 19%, indicating strong future demand.

Financial highlights

• Gross profit margin improved by 1.6 percentage points year-over-year to 24.7%, with gross profit for the nine months at ¥59,326 million, up from ¥50,904 million.

• SG&A expenses increased 9% year-over-year, reflecting investments in sales force, technology, and human capital.

• Operating profit margin rose to 12.3%, up 1.7 percentage points year-over-year.

• Basic earnings per share rose to 111.50 yen from 84.62 yen, reflecting a 2-for-1 stock split.

• Cash and cash equivalents surged to ¥183,044 million, up ¥79,068 million from the prior year period.

Outlook and guidance

• FY2024 full-year revenue forecast is ¥333.0 billion, up ¥22.4 billion from FY2023, with operating profit expected at ¥39.0 billion and profit attributable to owners at ¥26.5 billion.

• Gross profit margin for the full year is projected at 24.5%, and basic earnings per share is forecast at 144.83 yen.

• Dividend payout ratio is expected to rise to 50.4%, with annual dividends per share increasing by ¥30.5 to ¥73.0.

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