Business Engineering (4828) Q1 2027 earnings summary

Executive summary

• Achieved record highs in 1Q FY2026 for sales, operating profit, and orders received, driven by strong license sales, robust IT investments, and the consolidation of all overseas subsidiaries from this fiscal year.

• Operating profit rose 10.5% YoY to ¥1,910 million, and ordinary profit increased 9.7% to ¥1,921 million, both setting record highs for the fifth consecutive year.

• Net profit decreased 7.1% YoY due to the absence of the prior year's gain on sales of strategic shareholdings.

• No revisions to first-half or full-year forecasts; steady progress toward plan.

Financial highlights

• 1Q FY2026 net sales: ¥6,781 million (+12.3% YoY); operating profit: ¥1,910 million (+10.5% YoY); net profit: ¥1,274 million (-7.1% YoY); ordinary profit: ¥1,921 million (+9.7% YoY).

• Gross profit margin improved to 50.1% from 47.0% YoY.

• Orders received in 1Q: ¥7,214 million (+17.0% YoY).

• Comprehensive income was ¥1,408 million, up 19.1% YoY.

• Basic earnings per share for the quarter were ¥21.36, adjusted for a five-for-one stock split.

Outlook and guidance

• FY2026 full-year forecast: net sales ¥26,800 million (+9.6% YoY), operating profit ¥6,900 million (+7.6% YoY), net profit ¥4,600 million (-5.9% YoY), basic EPS ¥77.05.

• Dividend forecast maintained at ¥42.0 per share, payout ratio 54.5%.

• ROE expected to decline to 26.3% due to lower net profit and increased net assets.

• No changes to forecasts; progressing steadily toward targets.