Business Brain Showa-Ota (9658) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, was ¥28,291 million, up 12.8% year-over-year, driven by strong orders and new consolidations, with a progression rate of 72.9%.

• Business profit reached ¥2,197 million, a 21.1% increase year-over-year, with a progression rate of 71.8%.

• Profit attributable to owners of parent was ¥1,958 million, down 85.5% year-over-year, reflecting the absence of the previous year's extraordinary gain, with a progression rate of 73.1%.

• Orders received grew 21.4% year-over-year, and order backlog increased 12.4% year-over-year.

Financial highlights

• Orders received in consulting and system development rose by ¥1,406 million (+22.3%) compared to the same quarter last year.

• Management services (BPO) orders increased by ¥929 million (+63.9%) year-over-year, with significant contributions from new subsidiaries.

• Third quarter revenue was ¥10,227 million, with a business profit margin of 10%.

• Business profit for Q3 was ¥1,023 million, up from ¥449 million in the same quarter last year, driven by sales growth and improved utilization.

• Gross profit increased 12.2% year-over-year, but SG&A expenses rose 7.9% due to higher personnel and recruitment costs.

Outlook and guidance

• Full-year revenue forecast revised to ¥38,800 million (up 13.4% year-over-year), with business profit forecast at ¥3,060 million (up 27.5%).

• Profit attributable to owners of parent for the full year is forecast at ¥2,680 million, up 14.5% from the previous forecast, with basic EPS of 231.07 yen.

• Revenue is recovering but did not fully offset the first quarter shortfall; business profit exceeded initial expectations due to cost controls and improved sales pricing.

• No changes to the previously announced full-year earnings forecast.