SHIFT (3697) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales reached ¥129.8 billion, up 17.3% year-over-year, with gross margin at 34.7% (up 2.7 points YoY) and operating profit rising 48% to ¥15.6 billion.

• Profit attributable to owners of parent increased 74.3% to ¥8.94 billion.

• Outperformed the market in all segments, driven by large-scale project wins, strong demand for DX, and successful M&A integration.

• Expanded headcount and reinforced sales and recruiting infrastructure, targeting further growth and transformation toward long-term sales milestones.

• Achieved nearly all ambitious sales and profit targets for the year, with achievement rates above 99% for net sales and exceeding 104% for profits.

Financial highlights

• Net sales increased by ¥19.2 billion YoY, gross profit up 27.3%, EBITDA up 40.6%, and comprehensive income nearly doubled to ¥9.37 billion.

• Operating profit margin improved to 12.0% from 9.5% YoY; SG&A ratio stable at 22.6%.

• ROE improved to 24.1%, ROIC to 13.3%, and ROA to 12.8%; equity ratio at 52.7%.

• Consultant/engineer billing rates increased 11% YoY; loyal customer unit price reached ¥11.5 million/month.

• Cash and cash equivalents at year-end were ¥23.6 billion, up ¥2.76 billion from the previous year.

Outlook and guidance

• FY 2026 net sales target: ¥150 billion (+15.5% YoY), with gross margin at 34.5% and SG&A ratio at 22.5%.

• Adjusted operating and ordinary profit both projected at ¥20 billion (+13.4% and +16.3% YoY); adjusted profit attributable to owners of parent at ¥13.5 billion (+24.3% YoY).

• Ambition to reach ¥200 billion by FY 2027/2028 and ¥300 billion by 2030.

• Hiring target for FY 2026: 2,500–3,000, including 500–1,000 new graduates.

• New disclosure of adjusted profit metrics to better reflect core business performance, excluding M&A-related expenses and amortization.