Business Engineering (4828) Q3 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, and net profit for the third consecutive period, driven by robust license sales and improved project margins.

• Orders received reached ¥15,394 million, up 10.1% year-over-year, and net sales hit a record ¥15,257 million, up 4.6% year-over-year, driven by robust IT investments and strong license sales.

• Operating profit rose 17.3% to ¥3,662 million, ordinary profit also increased 17.3% to ¥3,673 million, and profit attributable to owners of parent grew 17.1% to ¥2,497 million, marking record highs for the seventh consecutive year.

• Upward revision of full-year forecasts for net sales, profits, and dividends due to strong performance and expected one-time tax benefits.

• Comprehensive income for the nine months was ¥2,589 million, up 20.8% year-over-year.

Financial highlights

• 3Q FY24 net sales rose 8.0% year-over-year to ¥5,165 million; 1-3Q net sales up 4.6% to ¥15,257 million.

• Operating profit for 3Q increased 23.5% year-over-year to ¥1,245 million; 1-3Q operating profit up 17.3% to ¥3,662 million.

• Net profit for 3Q grew 21.8% year-over-year to ¥839 million; 1-3Q net profit up 17.1% to ¥2,497 million.

• Basic earnings per share increased to ¥208.55 from ¥177.93 year-over-year.

• Orders received in 3Q surged 26.1% year-over-year to ¥5,252 million.

Outlook and guidance

• Full-year FY24 net sales forecast raised to ¥20,700 million (+6.2% YoY), operating profit to ¥4,600 million (+18.4% YoY), and net profit to ¥3,350 million (+27.6% YoY).

• Annual dividend forecast increased to ¥100 per share, marking the 10th consecutive year of dividend growth.

• Management targets FY26 net sales of ¥22.0 billion and operating profit of ¥4.8 billion.

• Basic EPS forecast at ¥279.76 for the full year.

• Ordinary profit forecast at ¥4,600 million, up 18.6%.