SRE Holdings (2980) Q3 2025 earnings summary

Executive summary

• Nine-month net sales rose 12.6% YoY to ¥14,413 million; operating profit declined 4.4% to ¥1,444 million and ordinary profit fell 6.7% to ¥1,300 million.

• Profit attributable to owners of parent fell 31.7% to ¥636 million; basic EPS was ¥39.59 versus ¥57.64 a year earlier.

• AICC revenue grew 47% YoY and segment profit increased 34%; L&P profit was pressured by project timing, with a large project expected to close in Q4.

• Management expected full-year operating profit to exceed guidance, supported by AICC growth and the expected Q4 L&P project.

Financial highlights

• EBITDA increased 9% YoY to ¥1,942 million; gross profit rose to ¥6,331 million from ¥5,240 million, while SG&A increased to ¥4,887 million.

• Comprehensive income decreased 24.4% to ¥739 million.

• Total assets grew to ¥33,220 million from ¥24,017 million at the prior fiscal year-end; net assets rose to ¥13,240 million from ¥12,460 million.

• Equity ratio declined to 37.8% from 50.6%; short-term borrowings rose to ¥3,816 million and long-term borrowings to ¥13,148 million.

Outlook and guidance

• FY2024 forecast: net sales ¥27,000 million (+11.5%), operating profit ¥3,050 million (+37.9%), ordinary profit ¥2,900 million (+40.9%), and profit attributable to owners of parent ¥1,850 million (+33.2%).

• FY2024 adjusted EBITDA guidance is ¥3,600 million (+39%); ARR target is ¥6,200 million (+45%).

• AICC guidance: revenue ¥7,500 million (+54%) and segment profit ¥2,400 million (+41%); L&P guidance: revenue ¥20,500 million (+2%) and operating profit ¥950 million (+10%).

• Period-end AUM target is ¥110 billion, up 70%; a large L&P fund contract is expected to close in Q4.

• No dividend is planned for the fiscal year; full-year basic EPS is forecast at ¥114.57.