Systena (2317) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q 2025/3 rose 5.4% year-over-year to 19,746 million yen, driven by expansion in high value-added businesses, recurring revenue focus, and DX-related projects.

• Operating profit increased 38.4% year-over-year to 2,643 million yen, with ordinary profit up 48.9% to 2,651 million yen.

• Profit attributable to owners of parent grew 48.9% year-over-year to 1,816 million yen.

• Active investment in human resources and improved compensation supported talent retention, with segment reclassification to reflect business focus.

Financial highlights

• Net sales: 19,746 million yen (+5.4% YoY); Operating profit: 2,643 million yen (+38.4% YoY); Ordinary profit: 2,651 million yen (+48.9% YoY); Profit attributable to owners: 1,816 million yen (+48.9% YoY).

• Gross profit improved to 4,917 million yen from 4,336 million yen YoY.

• Basic EPS increased to 4.73 yen from 3.15 yen YoY.

• Cash and cash equivalents at period end were 25,997 million yen, up from 24,231 million yen YoY.

• Equity capital at 34,850 million yen as of June 30, 2024; equity ratio improved to 70.8%.

Outlook and guidance

• Full-year net sales forecast maintained at 85,000–100,000 million yen.

• Operating and ordinary profit forecasts raised to 10,000–12,000 million yen (up 14.3–17.7%).

• Profit attributable to owners forecast increased to 7,000–8,400 million yen; EPS guidance raised to 18.98–22.78 yen.

• Profit margin improvements expected from higher contractual unit prices and increased orders for high value-added projects.

• Forecasts presented as ranges due to aggressive short-term investment policy and associated uncertainties.