SRE Holdings (2980) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 2Q were ¥8,095 million, down 20.3% YoY, with operating profit at ¥309 million (down 76%) and net income attributable to owners at ¥26 million (down 96%).

• The company operates two main segments: AI Cloud & Consulting (AICC) and Life & Property Solutions (L&P), focusing on technology-driven solutions in healthcare, finance, IT, and real estate.

• AICC segment showed strong growth, with segment profit up 64% YoY and net sales up 16% YoY; recurring revenue (ARR) reached ¥6,965 million, up 43% YoY.

• Generative AI and proprietary data from real business operations are central to the company's competitive advantage and product development.

• L & P segment experienced a planned deficit due to project concentration in the second half, with net sales down 28% YoY.

Financial highlights

• Gross profit for the period was ¥3,167 million, down from ¥4,457 million YoY.

• Ordinary profit was ¥185 million, down 85% YoY.

• Basic earnings per share dropped to ¥1.62 from ¥41.24 YoY.

• Equity ratio decreased to 37.7% from 44.8% at the previous fiscal year-end.

• Average monthly churn rate remained low at 0.4% over the last 12 months.

Outlook and guidance

• FY2025 full-year forecast: net sales ¥35 billion (+31% YoY), operating profit ¥4.05 billion (+30% YoY), net income ¥2.22 billion (+31% YoY), and EPS ¥137.88.

• AICC segment expected to maintain high growth, with ARR forecast at ¥8.66 billion (+38% YoY).

• L & P segment profit and sales are expected to be heavily weighted toward the second half due to seasonality.

• No changes to previously announced earnings forecasts.

• Dividend forecast is ¥18.0 per share.