Business Engineering (4828) Q2 2026 earnings summary

Executive summary

• Achieved record highs in sales, profits at all levels, and order intake for the first half, surpassing targets and revising full-year forecasts upward, marking the eighth consecutive year of record results.

• Growth was driven by robust IT investments, especially in the manufacturing sector, and strong performance in both Solutions and Products businesses.

• Net profit was boosted by gains from sales of strategic shareholdings in 1Q.

• Interim dividend increased to ¥78 per share, up ¥36 year-over-year.

Financial highlights

• 1H FY25 net sales: ¥12,280 million, up 21.7% year-over-year; operating profit: ¥3,370 million, up 39.4%; net profit: ¥2,489 million, up 50.2%.

• Orders received in 1H: ¥12,008 million, up 18.4% year-over-year.

• Gross profit margin for 1H: 45.8%; operating profit margin: 27.4%; net profit margin: 20.3%.

• EBITDA for 1H: ¥3,800 million, EBITDA margin: 30.9%.

• Cash and cash equivalents at end of 1H: ¥11,234 million, up ¥1,887 million from previous fiscal year end.

Outlook and guidance

• Full-year FY25 net sales forecast revised up to ¥24,000 million (+¥2,000 million), operating profit to ¥6,000 million (+¥800 million), net profit to ¥4,400 million (+¥700 million).

• Basic earnings per share forecasted at ¥73.49, reflecting a planned five-for-one stock split effective January 1, 2026.

• Expecting further sales and profit growth in 2H, with one-time tax benefits anticipated.

• Annual dividend forecast raised to ¥188 per share (pre-split), with a 5-for-1 stock split effective January 1, 2026.

• Dividend payout ratio to exceed 50%.