SRE Holdings (2980) Q3 2026 earnings summary

Executive summary

• Net sales for FY2025 3Q reached ¥17,573.9 million, up 21.9% year-over-year, with operating profit at ¥2,436.5 million, a 68.7% increase, and profit attributable to owners of parent up 119.2%.

• The business model integrates AI solutions with real-world operations in healthcare, finance, and real estate, driving recurring revenue and competitive advantage.

• ARR grew to ¥7,581 million, with low churn rates and strong client acquisition, especially in the healthcare segment.

• Operating profit marked a record high, driven by strong AICC segment growth and robust property sales in L&P.

Financial highlights

• Ordinary profit increased 70% year-over-year to ¥2,211.5 million.

• Net income attributable to owners of parent rose 119.2% year-over-year to ¥1,395.9 million.

• AICC segment net sales grew 20.2% year-over-year to ¥6,110 million, with segment profit up 52.2% to ¥2,481.7 million.

• L&P segment net sales rose 30.7% year-over-year to ¥12,969.7 million, with segment profit up 191.2% to ¥343.3 million.

• Basic earnings per share increased to ¥86.65 from ¥39.59 year-over-year.

Outlook and guidance

• FY2025 full-year net sales forecast is ¥35,000 million (+31.1% YoY), with operating profit of ¥4,050 million (+30.3% YoY), net income of ¥2,220 million (+30.8% YoY), and EPS of ¥137.88.

• Dividend forecast is ¥18.0 per share.

• AICC segment expected to grow revenue by 33% and profit by 38% year-over-year, with ARR guidance at ¥8.66 billion.

• L&P segment aims for a 43% increase in AUM to ¥165.6 billion by year-end.

• Temporary cash flow deterioration expected in FY2025 due to concentrated investment, with improvement anticipated from FY2026 onward.