Avant Group (3836) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended Q3 FY2025 rose 17.6% year-over-year to ¥20,938 million, with growth across all business segments and a rebound from prior year restructuring impacts.

• Operating profit increased 17.9% year-over-year to ¥3,625 million, driven by higher software sales, improved margins, and a rebound in Management Solutions, despite increased costs and a large project cancellation.

• Net profit grew 15.0% year-over-year to ¥2,270 million, maintaining an upward trend.

• Employee headcount reached 1,600 at the end of Q3, up 78 from the previous fiscal year-end.

Financial highlights

• Gross profit for the nine months was ¥9,308 million, up 18.9% year-over-year, with a gross margin of 44.5%.

• EBITDA for the period reached ¥3,996 million, up 15.2% year-over-year, with an EBITDA margin of 19.1%.

• Net profit per share was 62.24 yen, compared to 52.90 yen in the prior year period.

• Operating cash flow for the nine months was ¥1,827 million, up from ¥1,260 million year-over-year.

• Cash and cash equivalents at period-end were ¥12,429 million, up ¥452 million from the previous fiscal year-end.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales of ¥28,800 million (+17.9% YoY), operating profit of ¥4,900 million (+19.5% YoY), and net profit of ¥3,350 million (+17.5% YoY).

• Net profit per share for the full year is forecast at 91.46 yen.

• Dividend forecast for FY25 is ¥25 per share, aiming for a DOE of 6.23% and a medium-term target of 8%.

• Progress toward full-year sales forecast is on track, with Q3 sales at 72.7% of the annual target, consistent with historical trends.

• Management expects continued demand for data-driven management solutions, with gradual realization of benefits from group reorganization.