NEC Networks & System Integration (1973) Q3 2025 earnings summary

Executive summary

• Achieved record-high orders received, net sales, and profits for the first nine months of FY2025 compared to the same period last year.

• Net sales for the first nine months rose 6.6% year-over-year to ¥265,778 million, with operating income up 31.7% to ¥16,392 million and net income attributable to owners up 25.2% to ¥9,635 million.

• Business expansion driven by government, manufacturing, and finance sectors, with notable growth in product sales.

• Comprehensive income increased 48.4% year-over-year to ¥11,010 million for the nine-month period.

Financial highlights

• Orders received rose 7% year-over-year to ¥287.8 billion; net sales increased 7% to ¥265.8 billion.

• Gross profit for the nine months was ¥51,217 million, up from ¥46,654 million year-over-year.

• Operating income grew by ¥3.9 billion to ¥16.4 billion (6.2% of sales); net income attributable to owners rose ¥1.9 billion to ¥9.6 billion.

• Free cash flow turned positive at ¥10.8 billion, up ¥11.5 billion year-over-year.

• Orders backlog increased 8% to ¥241.3 billion.

Outlook and guidance

• Full-year forecasts revised upward: orders received expected at ¥385 billion (+2%), net sales at ¥365 billion (+7%), operating income at ¥29.0 billion (+3.9 billion), and net income at ¥18.0 billion (+2.7 billion) year-over-year.

• Full-year net sales forecast is ¥385,000 million, up 7.1% year-over-year.

• Operating and ordinary income are both projected at ¥29,000 million, up 15.4% and 17.5% respectively.

• Net income attributable to owners is forecast at ¥18,000 million, up 17.4% year-over-year, with EPS expected at ¥120.83.

• Year-end dividend forecast is ¥28.00 per share, unchanged from the interim dividend.