SCSK (9719) Q2 2026 earnings summary

Executive summary

• Net sales for H1 FY2025 rose 47.6% year-over-year to ¥371.3B, driven by strong IT investment demand and the consolidation of Net One Systems.

• Operating profit increased 54.3% year-over-year to ¥41.6B, with improved profitability and a shift of the PROACTIVE business to the sales phase.

• Profit attributable to owners of parent surged 85.1% to ¥35.6B, reflecting higher sales, operational efficiencies, and a gain on sales of an equity-method affiliate.

• EBITDA grew 55.8% year-over-year to ¥59.2B.

• The company is advancing sustainability management and business model redevelopment as part of its medium-term growth strategy.

Financial highlights

• Gross profit margin improved by 1.1pt to 27.2% year-over-year, with gross profit rising from ¥65,869 million to ¥101,147 million.

• SG&A expenses increased 10.4% year-over-year, partly due to merger-related costs.

• Incoming orders rose 46.9% to ¥364.1B, and backlog increased 66.9% to ¥307.0B.

• Basic and diluted EPS more than doubled to ¥113.91 from ¥61.56.

• Cash and cash equivalents rose by ¥29,485 million to ¥135,108 million as of September 30, 2025.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales of ¥790,000 million (+32.5%), operating profit of ¥85,000 million (+28.6%), and profit attributable to owners of parent of ¥63,500 million (+41.0%).

• Continued focus on digital supply chain, mobility, and security businesses, with double-digit growth in mobility and strong cross-selling synergies.

• Medium-term plan targets ¥200B in sales for growth businesses by FY2025, up from ¥130B in FY2022.

• No year-end dividend is planned for FY2025 due to a pending tender offer and planned delisting.