TIS (3626) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 3.0% year-over-year to ¥275.6 billion, with operating income up 0.4% to ¥30.5 billion and net income attributable to owners up 2.6% to ¥20.8 billion, driven by robust IT investment and digital transformation demand.

• Orders received and order backlog reached record highs, reflecting strong demand across key business segments.

• Growth was supported by the launch of a new three-year Medium-Term Management Plan focused on sustainable growth and value creation.

• Operating margin declined slightly due to fewer large projects but remained within expectations.

• Extraordinary income of ¥4.6 billion (mainly from gain on sale of investment securities) and extraordinary loss of ¥3.8 billion (mainly impairment loss) were recorded.

Financial highlights

• Gross profit increased 3.4% year-over-year to ¥75.8 billion, with the gross profit ratio rising 0.1 points to 27.5%.

• Net sales rose 3.0% year-over-year to ¥275.6 billion; operating income increased 0.4% to ¥30.5 billion.

• Net income attributable to owners grew 2.6% to ¥20.8 billion; net income to net sales ratio held steady at 7.6%.

• Actual results exceeded estimates for sales (+2.1%), operating income (+1.7%), and net income (+2.7%).

• Basic EPS for the period was ¥89.44, up from ¥84.16 in the prior year.

Outlook and guidance

• No revisions to full-year performance forecast; business expansion expected to support higher sales and operating income.

• FY2025 full-year forecast: net sales of ¥555.0 billion (+1.1%), operating income of ¥66.5 billion (+3.0%), and net income attributable to owners of ¥44.8 billion (-8.3%).

• Decrease in net income forecast due to lower non-operating and extraordinary income.

• Management expects continued growth through high-value businesses and productivity enhancements, despite the passing of large-scale project peaks.

• No changes to previously announced earnings or dividend forecasts; total return ratio targeted at 50%.