SCSK (9719) Q1 2027 earnings summary

Executive summary

• Net sales rose 7.3% year-over-year to ¥190,388 million, driven by strong demand for AI, security, and cloud solutions, especially in public and telecommunications sectors.

• Operating profit declined 6.1% year-over-year to ¥18,882 million due to a lower gross profit margin and the absence of a prior-year litigation reversal.

• Incoming orders surged 20.7% year-over-year to ¥206,732 million, and backlog increased 12.9% to ¥435,409 million, reflecting robust demand.

Financial highlights

• Gross profit increased 1.7% year-over-year to ¥49,636 million, but gross profit margin fell from 27.5% to 26.1%.

• EBITDA rose 21.1% year-over-year to ¥54,481 million.

• Profit attributable to owners of parent grew 1.2% year-over-year to ¥13,582 million.

Segment performance

• Systems Development net sales grew 1.6% year-over-year, with gains in manufacturing and telecom offsetting declines in automotive.

• System Maintenance and Operation/Services net sales increased 6.9% year-over-year, led by financial services and telecom demand.

• Packaged Software/Hardware Sales net sales jumped 14.6% year-over-year, driven by public sector projects.

• Incoming orders and backlog rose across all segments, especially in Packaged Software/Hardware Sales, which saw orders up 63.6% and backlog up 51.8%.