SCSK (9719) Q3 2026 earnings summary

Executive summary

• Consolidated net sales for the nine months ended December 31, 2025, rose 46.3% year-over-year to ¥563.1 billion, with operating profit up 50.5% to ¥62.9 billion, driven by higher sales, merger with Net One Systems, and gains on sale of ARGO GRAPHICS Inc. shares.

• Profit attributable to owners of parent increased 68.7% to ¥50,282 million, and comprehensive income attributable to owners of parent rose to ¥50,459 million.

• The merger with Net One Systems contributed to increased sales, profits, and operating margins, despite absorbing merger-related expenses.

• Third-quarter profit benefited from non-recurring gains, including a reversal of legal expenses.

• Shares are scheduled to be delisted following a tender offer by SC Investments Management Inc., a Sumitomo Corporation subsidiary.

Financial highlights

• Gross profit increased to ¥154.3 billion year-over-year, with a gross profit margin of 27.4%.

• EBITDA for the nine-month period was ¥89.1 billion, up 49.9% year-over-year.

• Basic and diluted earnings per share rose to ¥160.80 from ¥95.35 year-over-year.

• Total assets as of December 31, 2025, were ¥850,747 million, with total equity at ¥318,398 million.

• Net cash provided by operating activities increased to ¥59,278 million from ¥36,636 million year-over-year.

Outlook and guidance

• No consolidated financial forecast for the fiscal year ending March 31, 2026, due to the planned delisting.

• Forward-looking statements indicate continued focus on strategic investments and business expansion, but results may differ materially from projections.