Business Engineering (4828) Q2 2025 earnings summary

Executive summary

• Achieved record-high net sales and profits for the 7th consecutive interim period, driven by robust IT investment demand in manufacturing and strong license sales in the Products Business.

• Interim net profit rose 14.8% year-over-year, and all major profit metrics exceeded both prior year and internal forecasts.

• Orders received totaled ¥10,142 million, up 3.3% year-over-year, with mcframe license sales up 21.6%.

• Interim dividend set at 42 yen per share, with annual dividend forecasted at 84 yen, marking the 10th consecutive year of increases.

Financial highlights

• Net sales for 1H FY2024 reached ¥10,092 million, up 2.9% year-over-year, setting a new record high.

• Operating profit grew 14.3% year-over-year to ¥2,417 million, with a margin of 23.9%.

• Gross profit increased to ¥4,534 million from ¥4,060 million year-over-year, with margin improving to 44.9%.

• Comprehensive income for the period was ¥1,665 million, up 10.8% year-over-year.

• Basic earnings per share rose to ¥138.46 from ¥120.38 year-over-year.

Outlook and guidance

• Full-year FY2024 net sales forecast at ¥20,500 million, up 5.2% year-over-year, with operating profit revised up to ¥4,300 million.

• Profit attributable to owners of parent projected at ¥2,900 million, up 10.4% year-over-year.

• Record highs expected for net sales, operating profit, ordinary profit, and net profit for the 9th consecutive year.

• Orders received projected to exceed ¥21,000 million, with continued strong IT investment in manufacturing.

• Annual dividend forecast increased to ¥84.00 per share.