Computer Engineering & Consulting (9692) Q2 2025 earnings summary

Executive summary

• Net sales rose 4.3% year-over-year to ¥27,570 million, driven by strong ICT investment and growth in both focus and core businesses.

• Operating income declined 7.8% year-over-year to ¥3,250 million due to increased growth investments, higher SG&A expenses, and fewer large projects.

• Orders received and outstanding order balances hit record highs, up 6.6% and 4.7% year-over-year, respectively.

• Net income attributable to owners fell 9.7% year-over-year to ¥2,213 million.

• Board resolved to acquire and extinguish up to ¥3 billion in treasury stock by December 2024 to enhance capital efficiency and shareholder returns.

Financial highlights

• Gross profit increased to ¥7,438 million from ¥7,161 million year-over-year; gross margin remained stable at 27.0%.

• Interim net income attributable to owners of parent fell 9.7% year-over-year to ¥2,213 million.

• Operating profit margin decreased from 13.3% to 11.8% year-over-year.

• Manufacturing sector sales grew 9.6% year-over-year, now 45.4% of total sales.

• Cash and cash equivalents at period-end were ¥26,265 million, down ¥449 million from the previous year-end.

Outlook and guidance

• Full-year net sales forecast at ¥56,500 million, up 6.4% year-over-year.

• Operating income projected at ¥6,280 million (down 1.3% year-over-year), and net income at ¥4,300 million (down 5.3%).

• No changes to previously announced forecasts; revisions will be disclosed if necessary.

• Growth investments and shareholder returns, including a ¥3 billion share buyback, to proceed as planned.