ISB (9702) Q2 2025 earnings summary

Executive summary

• Net sales for H1 FY2025 rose 10.6% YoY to ¥18,439 million, exceeding plan, but operating profit declined 8.8% YoY to ¥1,402 million and profit attributable to owners dropped 30.2% to ¥781 million due to significant investments for future growth.

• Strategic investments in digital transformation, talent acquisition, and office relocation impacted profitability.

• Comprehensive income decreased 37.6% YoY to ¥782 million.

Financial highlights

• Net sales for H1 FY2025: ¥18,439M, up 10.6% YoY and 104% of plan.

• Operating profit: ¥1,402M, down 8.8% YoY but 148% of plan.

• Ordinary profit: ¥1,420M, down 9% YoY.

• Profit attributable to owners: ¥781M, down 30.2% YoY.

• Gross profit increased to ¥4,600M, while SG&A expenses rose to ¥3,197M.

• Basic earnings per share fell to ¥68.29 from ¥98.04 YoY.

• Total assets increased to ¥20,474M as of June 30, 2025.

• Net cash provided by operating activities was ¥1,130M; investing activities used ¥851M; financing activities used ¥615M.

Outlook and guidance

• FY2025 full-year forecast revised upward: net sales ¥36.9B (+¥0.8B), operating profit ¥2.66B (+¥0.46B), ordinary profit ¥2.75B (+¥0.45B), profit attributable to owners ¥1.69B (+¥0.12B).

• Full-year 2025 net sales forecast at ¥36,900M (up 8.7% YoY), with operating profit expected to decline 5.0% to ¥2,660M and profit attributable to owners to decrease 16.9% to ¥1,690M.

• Dividend forecast raised to ¥55/share (payout ratio 32.5%).

• Medium-term plan targets FY2026 net sales of ¥38B and operating profit of ¥3B.