Simplex (4373) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue of ¥47.4bn (+16.4% YoY) and operating profit of ¥10.8bn (+22.1% YoY), with strong H2 recovery after reallocating resources from a canceled insurance project.

• Profit attributable to owners rose 25.6% to ¥7.8bn; comprehensive income increased to ¥8.2bn.

• Growth led by Strategy/DX Consulting, Enterprise DX, System Integration, and Operation Service; Insurance impacted by project cancellation.

• Gross profit margin declined to 41.4% due to project mix and insurance project cancellation.

• Vision1000 and MTBP2027 strategies launched to target ¥100bn revenue and sustainable growth.

Financial highlights

• Revenue: ¥47,394mn (+16.4% YoY); Operating profit: ¥10,804mn (+22.1% YoY); Net profit: ¥7,781mn (+25.6% YoY).

• Operating profit margin improved to 22.8% (up 1.1pt YoY); gross profit margin at 41.4% (down 1.5pt YoY).

• Basic EPS increased to 133.82 yen; diluted EPS to 130.24 yen.

• Orders received in Q4 FY3/25 reached ¥14.7bn (+23.5% YoY); outstanding project orders at record ¥21.6bn (+13.3% YoY).

• Cash and cash equivalents at year-end were ¥13.4bn; net cash from operating activities was ¥9.7bn.

Outlook and guidance

• FY3/26 revenue forecast: ¥54.5bn (+15.0% YoY); operating profit: ¥12.7bn (+17.5% YoY); net profit: ¥8.65bn (+11.2% YoY).

• Gross profit margin expected to rise to 43.5%; SG&A to increase with aggressive talent investment.

• Dividend per share planned to increase to ¥65 for FY3/26, with a target payout ratio of 40%.

• H2 FY3/26 expected to outperform H1 due to seasonal hiring and assignment trends.

• Insurance domain strategy revised; revenue from planning support to be included in Strategy/DX Consulting.