Business Brain Showa-Ota (9658) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2025, rose 13.0% year-over-year to ¥20,410 million, driven by strong performance in consulting, system development, and BPO & managed services.

• Business profit increased 27.4% year-over-year to ¥1,496 million, exceeding plan by 4.6%.

• Profit attributable to owners of parent grew 23.9% year-over-year to ¥1,229 million.

• Orders received and backlog both increased by 11.5% year-over-year, reflecting robust demand.

• Progressing steadily in the second year of the BBS2026 Medium-term Management Plan, with revenue and business profit tracking close to targets.

Financial highlights

• 2Q FY2025 revenue: ¥20,410 million (47.9% of full-year forecast); business profit: ¥1,496 million (45.3% of forecast).

• Gross profit increased 11.6% year-over-year to ¥4,497 million, despite higher subcontract and other expenses.

• Basic earnings per share for the period was ¥113.57, up from ¥85.50 in the prior year.

• Total assets as of September 30, 2025, were ¥46,273 million, up ¥950 million from March 31, 2025.

• Stock price increased 6.0x over 10 years, outpacing TOPIX (2.2x).

Outlook and guidance

• No change to full-year FY2025 forecast: revenue ¥42,600 million, business profit ¥3,300 million, profit attributable to owners ¥2,560 million.

• Full-year revenue forecast for the fiscal year ending March 31, 2026, is ¥42,600 million, up 9.8% year-over-year.

• BBS2026 targets: sales growth rate 13.0% (YoY 6.3%), business profit margin 8.5% by FY2026.

• Profit attributable to owners of parent is projected at ¥2,600 million, with basic EPS of ¥222.35.

• No changes have been made to previously announced earnings or dividend forecasts.