SRE Holdings (2980) investor relations material

Executive summary

• Achieved record net sales and profits for the seventh consecutive year, with net sales up 23.1% year-over-year to ¥32,858 million and operating profit up 34.5% to ¥4,181 million, driven by disciplined, profitability-focused order expansion and improved productivity.

• Profitability improved through full implementation of AI transformation, with strong core business growth expanding cash generation capacity.

• Profit attributable to owners of parent rose 8.5% year-over-year to ¥1,841 million, with comprehensive income at ¥1,940 million.

• Both core segments—AI Cloud & Consulting and Life & Property Solution—delivered robust performance, with the former driving medium-term growth and the latter providing stable earnings.

• Recorded an extraordinary impairment loss of ¥579 million due to business portfolio reorganization.

Financial highlights

• FY2025 net sales: ¥32,858 million (+23.1% YoY); operating profit: ¥4,180 million (+34.5% YoY); EBITDA: ¥4,964 million (+30.2% YoY); net income: ¥1,840 million (+8.5% YoY).

• Dividend per share increased to ¥18.0 (+¥3.0 YoY); ROE at 12.7% (up from 10.4%).

• FY2026 forecast: net sales ¥41,800 million (+27.2% YoY), operating profit ¥5,230 million (+25.1% YoY), net income ¥2,830 million (+53.8% YoY), dividend per share ¥20.0.

• Gross profit increased to ¥11,408 million from ¥9,532 million year-over-year.

• Cash and cash equivalents at year-end increased to ¥8,304 million.

Outlook and guidance

• FY2026 targets record revenue for the eighth straight year, with business expansion and margin improvement.

• Significant YoY profit growth expected, driven by absence of prior-year impairment and enhanced core profitability.

• Plans to expand AI Cloud & Consulting in healthcare and increase asset-light operations in Life & Property Solution.

• Continued focus on capital efficiency, maintaining ROE at approximately 12%.

• Cautions on risks from geopolitical tensions, material procurement, and logistics affecting project timing.