NS Solutions (2327) Q4 2026 earnings summary

Executive summary

• FY2025 revenue reached ¥381.3 billion, up 13% year-over-year, with operating profit at ¥44.2 billion (+15%) and net profit at ¥30.8 billion (+14%).

• Growth was driven by robust domestic IT demand, digital transformation, and successful business model transformation.

• INFOCOM CORPORATION was acquired and consolidated, contributing to growth and business model transformation.

• The company is transitioning to a TAM model, with the TAM-type revenue ratio reaching 38% and a target of 50% by FY2026.

• Launched the CorePeak brand, aiming for ¥10 billion in new business in its first year.

Financial highlights

• Gross profit margin improved to 26.7% (+2.5 pts YoY), supported by higher productivity and value-added projects.

• SG&A expenses rose by ¥14.4 billion, mainly due to the Infocom acquisition and mid-term plan initiatives.

• Infocom contributed ¥1 billion to consolidated operating profit after acquisition-related expenses.

• Cash and cash equivalents decreased by ¥84.1 billion, reflecting M&A activity and tax payments; period end balance was ¥108.8 billion.

• ROE increased to 11.4% from 10.9% year-over-year.

Outlook and guidance

• FY2026 revenue guidance is ¥417.0 billion (+9% YoY), operating profit ¥47.5 billion (+7%), and net profit ¥31.6 billion (+2%).

• Approximately 40% of FY2026 sales forecast is already covered by the order backlog.

• Dividend payout ratio is maintained at 50%, with annual dividend forecast for FY2026 at 87.0 yen per share.