TKC Corporation (9746) Q2 2025 earnings summary

Executive summary

• Turnover for the 2nd quarter rose 5.9% year-over-year to 39,227 million yen, while operating profit fell 3.5% to 8,676 million yen and net profit attributable to owners decreased 1.0% to 6,314 million yen.

• Income increased but profit declined due to the absence of one-time software and consulting revenues in the Local Governments Business Division and increased depreciation from capitalized software.

• The company launched new digital services, expanded cloud adoption, and completed key system migrations for local governments.

Financial highlights

• Gross profit for the quarter was 27,173 million yen, up from 26,583 million yen year-over-year.

• Equity ratio improved to 85.0% from 81.8% at the previous fiscal year-end.

• Cash and cash equivalents at period-end were 29,855 million yen, down 542 million yen from the previous year-end.

• Comprehensive income increased 10.9% year-over-year to 8,007 million yen.

Outlook and guidance

• Full-year forecast: turnover of 80,000 million yen (+6.4% YoY), operating profit of 15,700 million yen (+1.3%), ordinary profit of 16,200 million yen (+1.0%), and net profit attributable to owners of 11,400 million yen (+1.1%).

• Dividend forecast maintained at 100 yen per share for FY2025, with a 50 yen interim and 50 yen year-end dividend.