Simplex (4373) Q2 2026 earnings summary

Executive summary

• Strong demand for digital transformation and IT solutions drove record revenue and operating profit for the quarter and half year, surpassing previous forecasts.

• Orders received and order backlog reached all-time highs, reflecting robust business momentum.

• Strategic allocation of R&D and safety cushion resources to client projects increased revenue per engineer and consultant.

• Revenue for the six months ended September 30, 2025, reached ¥27,801 million, up 27.1% year-over-year, with strong performance in System Integration, Operation Service, and Strategy/DX Consulting.

• Operating profit rose 80.2% year-over-year to ¥7,055 million, with profit attributable to owners of parent up 84.1% to ¥4,777 million.

Financial highlights

• H1 FY3/26 revenue rose 27.1% year-over-year to ¥27.8bn, with gross profit up 40.8% to ¥12.2bn and gross margin improving by 4.3 points to 43.9%.

• Operating profit surged 80.2% year-over-year to ¥7.06bn, with operating margin up 7.5 points to 25.4%.

• Profit attributable to owners of parent increased 84.1% year-over-year to ¥4.78bn.

• Basic earnings per share: ¥84.06 (up from ¥44.52 year-over-year).

• Total assets: ¥78,275 million; total equity: ¥50,382 million as of September 30, 2025.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥57.0bn (+20.3% YoY), with operating profit forecast at ¥14.0bn (+29.6% YoY).

• Profit attributable to owners of parent forecast: ¥9,515 million (up 22.3% YoY).

• Over 79% of full-year revenue forecast already secured through H1 results and order backlog.

• Basic earnings per share forecast: ¥41.48, reflecting a 4-for-1 stock split effective December 1, 2025.

• Dividend forecast raised from ¥65 to ¥72 per share (¥18 post-split), and a 1-for-4 stock split will enhance liquidity.