Dentsu Soken (4812) Q4 2025 earnings summary

Executive summary

• Net sales rose 8.0% year-over-year to ¥164,865 million, marking a record high for the 10th consecutive period, with operating profit up 8.8% to ¥22,888 million, both driven by Business Solutions and Communication IT segments.

• Profit attributable to owners of parent increased 8.3% year-over-year to ¥16,365 million, exceeding plan, and annual dividend was raised for the 13th consecutive year.

• All segments contributed to sales growth, with notable strength in Business Solutions and Communication IT.

• Fourth-quarter orders received grew 19.4%, with order backlog up 27.5% year-over-year, mainly in Business Solutions.

• The company launched a new medium-term management plan aiming for further growth and higher profitability by 2027.

Financial highlights

• FY12/2025 net sales: ¥164,865 million (+8.0% YoY); operating profit: ¥22,888 million (+8.8% YoY); ordinary profit: ¥23,618 million (+12.0% YoY); profit attributable to owners of parent: ¥16,365 million (+8.3% YoY).

• Gross profit margin was 36.6% (-0.2pt YoY); operating margin 13.9% (+0.1pt YoY); ROE 17.1%.

• Gross profit increased to ¥60,376 million from ¥56,123 million year-over-year.

• Comprehensive income rose 7.8% to ¥16,566 million.

• Cash and cash equivalents at year-end: ¥69,419 million (+¥7,697 million YoY).

Outlook and guidance

• FY12/2026 forecast: net sales ¥182,000 million (+10.4% YoY), operating profit ¥25,500 million (+11.4% YoY), profit attributable to owners of parent ¥18,000 million (+10.0% YoY).

• Targeting over 10% growth in both net sales and operating profit, with significant R&D investments planned.

• Dividend payout ratio targeted at 50% by FY2027; FY2026 dividend forecast is ¥45 per share post-split, aiming for 14th consecutive year of increases.