NTT DATA Group (9613) Q2 2025 earnings summary

Executive summary

• Net sales rose 7.8% year-over-year to ¥2,240.1B, driven by strong domestic, GTSS, and overseas performance, with favorable FX rates.

• Operating profit increased 22.3% year-over-year to ¥149.0B, reflecting sales growth and absence of prior unprofitable/structural costs.

• Profit attributable to shareholders grew 9.0% year-over-year to ¥57.8B; net income per share was ¥41.22.

• New orders received increased 15.4% year-over-year to ¥2,500.4B, driven by strong performance in Japan and overseas, especially in data center and SAP businesses.

• Comprehensive income attributable to shareholders dropped to ¥25.1B from ¥170.1B a year ago, mainly due to negative FX translation effects.

Financial highlights

• Operating profit margin improved by 0.8 points year-over-year to 6.7%.

• Overseas net sales increased 7.7% year-over-year to ¥1,371.2B, with positive FX impact.

• Data center business revenue rose to $1,190M (up $340M YoY), with EBITDA at $407M (up $80M YoY).

• Order backlog reached ¥6,074.1B, up ¥713.0B year-over-year.

• Total assets stood at ¥7,195.4B as of September 30, 2024; equity attributable to shareholders was ¥1,725.9B (equity ratio 24.0%).

Outlook and guidance

• Full-year net sales forecast at ¥4,430.0B, operating profit at ¥336.0B, and profit attributable to shareholders at ¥137.0B.

• Dividend forecast raised to ¥25.00 per share for FY2025, up from ¥23.00 in FY2024.

• Data center business targets EBITDA over $1,400M (over ¥190B) by FY2027.

• Initiatives to control interest-bearing debt include refinancing and potential REIT utilization in FY2025.

• Results forecasts are based on current information and subject to change due to future factors.