Secom (9735) Q2 2025 earnings summary

Executive summary

• Achieved record-high revenue, ordinary profit, and net income for the six months ended September 30, 2024, all exceeding company projections, with revenue at ¥560.2 billion, up 2.8% year-over-year.

• Interim dividend set at 95 yen per share; year-end dividend planned at 50 yen (100 yen without stock split); annual dividend per share projected at ¥95.00 post-split.

• Implemented a 2-for-1 stock split on October 1, 2024, and introduced a new shareholder benefits program to encourage long-term holding.

• Announced an 8% increase in subscription fees for commercial online security systems effective November 2024.

• Completed tender offer for PASCO Corporation and launched new security services and AI-linked security robot initiatives.

Financial highlights

• Revenue for 2Q FY2025 was ¥560.2 billion, up 2.8% year-over-year; operating profit was ¥59.1 billion, down 6.4% year-over-year.

• Ordinary profit rose 9.5% year-over-year to ¥83.6 billion; net income attributable to owners of the parent increased 2.4% to ¥50.4 billion.

• Basic net income per share for 2Q was ¥120.97 (post-stock split basis).

• Gross profit was ¥169.2 billion, with SG&A expenses rising to ¥110.1 billion.

• Total assets as of September 30, 2024, were ¥2,064.1 billion, down 0.8% from March 31, 2024.

Outlook and guidance

• Full-year projections revised upward: revenue to ¥1,192.4 billion (+1.9% to +3.3%), operating profit to ¥140.8 billion (+0.1% to +7.3%), ordinary profit to ¥168.9 billion (+22.4%), and net income to ¥104.6 billion (+2.6% to +20.2%).

• Basic net income per share forecast at ¥251.57 for the full year.

• Annual dividend per share is projected at ¥95.00 post-split, or ¥195.00 without considering the split.