Business Brain Showa-Ota (9658) Q4 2025 earnings summary

Executive summary

• Revenue increased 13.4% year-over-year to ¥38,804 million, driven by acquisitions and strong performance in consulting, system development, and BPO businesses.

• Business profit rose 13.2% year-over-year to ¥2,871 million, with major contributions from subsidiaries Fresco and Twinkle.

• Profit attributable to owners of parent declined 82.5% year-over-year to ¥2,469 million, reflecting the absence of prior year non-recurring gains.

• Improved profitability in accounting system consulting and system development, offset by declines in HR and payroll outsourcing profitability.

Financial highlights

• Orders received rose to ¥40,377 million, up 16.4% year-over-year; order backlog increased 13.8% to ¥12,998 million.

• Gross profit increased 9.1% year-over-year to ¥8,590 million, while SG&A expenses rose 7.0%.

• Cash and cash equivalents at year-end were stable at ¥9,908 million.

• Total assets grew to ¥45,323 million, and total equity reached ¥29,612 million.

• Returned ¥2.5 billion to shareholders via dividends and share buybacks.

Outlook and guidance

• FY2025 revenue forecast at ¥42,600 million, up 9.8% year-over-year; business profit projected to rise to ¥3,300 million, a 14.9% increase.

• Profit attributable to owners of parent forecast at ¥2,560 million (+3.7%).

• Annual dividend forecast raised to ¥89 per share, maintaining a 40% payout ratio policy.

• Profitability expected to improve as temporary negative factors are resolved.