NTT DATA Group (9613) Q1 2025 earnings summary

Executive summary

• New orders surged 46.7% year-over-year to ¥1,464.3 billion, driven by strong data center and domestic business performance.

• Net sales increased 9.6% year-over-year to ¥1,112.1 billion, progressing steadily toward the full-year forecast.

• Operating profit was stable at ¥58.6 billion (up 0.6% year-over-year), while profit attributable to shareholders declined 23.2% to ¥21.2 billion, both in line with plan.

• No changes were made to the original full-year guidance or forecasts.

• Major strategic moves included the acquisition of GHL Systems in Malaysia and new executive leadership appointments.

Segment performance

• Overseas segment restructured into North America, EMEAL, APAC, and GTSS as of April 2024.

• Japan segment saw a ¥72.8 billion increase in new orders, led by public, social infrastructure, enterprise, and financial sectors.

• Overseas net sales rose 12.8% to ¥697.6 billion, driven by Global Technology and Solution Services and data center business.

• Japan net sales reached ¥421.2 billion (+3.9% year-over-year), with Public & Social Infrastructure and Financial segments leading growth.

• Data center business revenue grew to ¥91.5 billion (+68% year-over-year); EBITDA reached ¥29.6 billion.

Financial highlights

• Net sales: ¥1,112.1 billion (+9.6% year-over-year); operating profit: ¥58.6 billion (+0.6%); operating margin: 5.3% (-0.5pt year-over-year).

• Profit attributable to shareholders: ¥21.2 billion (-23.2% year-over-year).

• Interest-bearing debt: ¥2.44 trillion (up ¥266.9 billion from March 2024), with ¥110.0 billion due to FX effects.

• Free cash flow: negative ¥41,659 million, due to higher investing outflows and lower operating inflows.

• Dividend forecast for FY2024: ¥25.00 per share (up from ¥23.00 in FY2023).