SCSK (9719) Q2 2025 earnings summary

Executive summary

• Net sales rose 8.8% year-over-year to ¥251,523 million, driven by robust IT investment demand across all business segments.

• Gross profit increased 7.6% year-over-year, absorbing higher expenses for ProActive business strengthening and BPO restructuring.

• Operating profit was nearly flat, up 0.1% to ¥26,958 million, as higher costs and partial disposal of ProActive software assets offset sales growth.

• Profit attributable to owners of parent increased 4.2% year-over-year for the half, aided by the absence of prior-year valuation losses.

• The company continues to pursue sustainability management and business model redevelopment as part of its medium-term plan.

Financial highlights

• Net sales: ¥251,523 million (+8.8% YoY); gross profit: ¥65,869 million (+7.6% YoY); operating profit: ¥26,958 million (+0.1% YoY).

• Operating profit margin declined to 10.7% from 11.6% year-over-year.

• Incoming orders increased 10.7% year-over-year; backlog rose 4.6% year-over-year.

• Basic and diluted EPS rose to ¥61.56 from ¥59.12 year-over-year.

• Cash and cash equivalents at period-end were ¥150,266 million, up ¥5,906 million from March 31, 2024.

Outlook and guidance

• Full-year net sales forecast at ¥510,000 million, up 6.2% year-over-year.

• Operating profit projected at ¥44,500 million (+8.8%), profit attributable to owners at ¥31,000 million (+10.0%).

• Effects of structural reforms in BPO expected to materialize in the second half, with full-scale recovery anticipated from the next fiscal year.

• Continued investment in business transformation and digitalization, with focus on recurring-type business models.

• Annual dividend forecast raised to ¥68.00 per share.