PCA (9629) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 11.6% year-over-year to ¥7,895M, driven by strong cloud and subscription service growth and a price revision for software and maintenance.

• Operating profit increased 37.7% year-over-year to ¥1,375M, with profit attributable to owners up 38.4% to ¥913M and ordinary profit up 37.2% to ¥1,408M.

• Cloud sales surged 30.9% year-over-year, now accounting for 57.1% of total sales, while packaged product sales declined 58.1% after discontinuation.

• The company ended sales of packaged software in March 2024, accelerating the shift to subscription-based services.

• Comprehensive income for the first half was ¥1,435M, up 124.9% year-over-year.

Financial highlights

• Gross profit margin improved to 65.7% from 62.6% year-over-year, with gross profit at ¥5,186M.

• SG&A expenses rose 11% year-over-year, but the expense ratio remained stable at 48.3%.

• EPS increased from ¥33.00 to ¥45.59 year-over-year.

• Total assets as of September 30, 2024, were ¥33,085M, with net assets of ¥18,749M and an equity ratio of 55.9%.

• Gain on sales of investment securities was ¥22M, while loss on sales was ¥46M.

Outlook and guidance

• Full-year FY2025 net sales forecasted at ¥16,507M (+9.9% year-over-year), with operating profit of ¥2,357M (+2.1%) and ordinary profit of ¥2,391M (+2.1%).

• Profit attributable to owners expected to reach ¥1,656M (+2.8% year-over-year), with EPS of ¥82.70.

• Dividend per share to increase from ¥81 to ¥83, with a payout ratio of 100.4%.

• Company aims to quickly achieve ROE of 10% and maintain a positive EVA spread, prioritizing shareholder returns.

• Annual dividend forecast is ¥83.00 per share.