NTT (9432) investor relations material

Executive summary

• Operating revenues, operating profit, and profit all increased year-over-year for the nine months ended December 31, 2025, with operating revenues reaching record-high levels.

• The full-year consolidated earnings forecast was revised downward due to underperformance in the mobile segment, increased sales promotion expenses, and realized profits from the transfer of Data Centers for REIT at DATA Group.

• Management acknowledged ongoing business challenges and committed to more conservative and realistic planning for the next fiscal year.

• Significant progress was made in mass production of photonics-electronics convergence devices and the social implementation of AI integrating digital and physical domains.

• The acquisition of SBI Sumishin Net Bank expanded the group’s financial business capabilities and know-how in the smart life area.

Financial highlights

• Operating revenues: ¥10,421.0B (+3.7% year-over-year); EBITDA: ¥2,657.3B (+4.1%); operating profit: ¥1,457.1B (+4.1%); profit attributable to the company: ¥926.1B (+8.9%).

• Total assets as of December 31, 2025, reached ¥46,834,791 million, up from ¥30,062,483 million at March 31, 2025.

• Shareholders' equity decreased to ¥9,510,083 million, with the equity ratio dropping to 20.3% from 34.0% at the previous fiscal year-end.

• Net cash provided by operating activities was ¥957,382 million, while investing activities used ¥474,048 million and financing activities provided ¥1,313,925 million.

• Dividends per share for the year ending March 31, 2026, are forecast at ¥5.30, up from ¥5.20 in the prior year.

Outlook and guidance

• FY2025 operating revenues forecast: ¥14,164.0B, revised down by ¥26.0B from initial forecast; EBITDA forecast: ¥3,280.0B (down ¥110.0B); operating profit forecast: ¥1,660.0B (down ¥110.0B); profit forecast: ¥965.0B (down ¥75.0B).

• Management aims for profit improvement in the next fiscal year, focusing on efficiency and organic growth in key segments.

• Sales promotion expenses are expected to remain at current levels if competitive pressures persist, with potential for reduction if market conditions improve.

• Network investment and related disposal expenses will continue, with a peak in costs expected through FY 2026 before declining.

• Basic earnings per share for the full year are projected at ¥11.70.