Business Engineering (4828) Q4 2026 earnings summary

Executive summary

• Achieved record highs in sales, profits, and orders for FY2025, driven by robust DX and IT investments in manufacturing, with strong growth in both Solutions and Products businesses.

• Net profit rose significantly, aided by one-time tax benefits and extraordinary income from investment securities sales; annual dividend increased sharply, reflecting a new 50%+ payout ratio policy.

• Growth supported by strong license sales, improved project profitability, and continued focus on digital transformation, global expansion, and sustainability, including AI integration and human capital management.

Financial highlights

• FY2025 net sales: ¥24,442 million (+17.6% YoY); operating profit: ¥6,411 million (+37.1% YoY); net profit: ¥4,890 million (+46.8% YoY); ordinary profit: ¥6,435 million (+37.5% YoY).

• Gross profit margin improved to 45.6% (from 43.8% YoY); operating profit margin reached 26.2%.

• Orders received grew to ¥24,585 million (+13.3% YoY).

• Comprehensive income: ¥4,677 million (+34.0% YoY).

• Cash and cash equivalents at year-end: ¥12,141 million (+29.9% YoY), up ¥2,794 million from previous year.

Outlook and guidance

• FY2026/2027 net sales forecast: ¥26,800 million (+9.6% YoY); operating profit: ¥6,900 million (+7.6% YoY); net profit: ¥4,600 million (-5.9% YoY, due to absence of prior year’s one-time tax benefit).

• Dividend to be maintained at ¥42.0 per share; payout ratio expected to rise to 54.5%.

• Consolidation of all five previously non-consolidated overseas subsidiaries from FY26/27, expected to add ¥1,200 million to sales and ¥200 million to operating profit.