Business Engineering (4828) Q1 2026 earnings summary

Executive summary

• Achieved record highs in orders received (¥6,164 million, +31.9% YoY), net sales (¥6,039 million, +19.8% YoY), and profits at all levels, driven by robust IT investments, strong Solutions Business performance, and record license sales.

• Operating profit rose to ¥1,728 million (+48.0% YoY), ordinary profit to ¥1,750 million (+48.0% YoY), and net profit to ¥1,371 million (+70.8% YoY), all achieving quarterly record highs for the fourth consecutive year.

• Strategic shareholding sales and extraordinary income contributed to the significant net profit increase.

• Comprehensive income for the quarter was ¥1,182 million, up 40.0% YoY.

• Robust DX demand in manufacturing and positive business confidence supported growth.

Financial highlights

• 1Q FY2025 net sales: ¥6,039 million (+19.8% YoY); operating profit: ¥1,728 million (+48.0% YoY); ordinary profit: ¥1,750 million (+48.0% YoY); net profit: ¥1,371 million (+70.8% YoY).

• Gross profit margin improved to 47.0% (from 44.1% YoY); operating profit margin rose to 28.6%.

• Orders received in 1Q: ¥6,164 million (+31.9% YoY).

• EBITDA for 1Q: ¥1,948 million; EBITDA margin: 32.3%.

• Basic earnings per share increased to ¥114.54 from ¥67.07 YoY.

Outlook and guidance

• First half FY2026 forecast: net sales ¥11,800 million (+16.9%), operating profit ¥3,000 million (+24.1%), ordinary profit ¥3,000 million (+23.4%), net profit ¥2,200 million (+32.7%), EPS ¥183.73.

• FY2025/FY2026 full-year forecast: net sales ¥22,000 million (+5.9% YoY), operating profit ¥5,200 million (+11.2% YoY), net profit ¥3,700 million (+11.1% YoY), EPS ¥308.99.

• Dividend per share to increase to ¥156 (payout ratio 50.5%), marking the 11th consecutive annual increase.

• Upward revision to first half forecast announced; full-year forecast unchanged.

• Continued focus on growth investments in product development, M&A, and SaaS expansion.