I'LL (3854) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended April 30, 2025, rose 9.5% year-over-year to ¥14,098 million, with operating profit up 6.0% to ¥3,465 million and profit attributable to owners of parent up 7.9% to ¥2,356 million.

• Both system solutions and online solutions businesses posted growth in net sales and gross profit, supported by recurring revenue, new client acquisitions, and steady orders for large projects.

• The business benefited from robust demand for digital transformation solutions and enhanced product offerings.

• The "CROSS-OVER Synergy" strategy integrated real and online services, with ongoing R&D investment to maintain competitiveness.

• Net sales and operating profit reached record highs for both year-to-date and quarter-to-date periods, with steady growth unaffected by macroeconomic fluctuations.

Financial highlights

• Gross profit increased to ¥7,775 million, while cost of sales rose 12.1% year-over-year due to higher personnel and product costs.

• Operating profit margin was 24.6%, slightly down from 25.4% in the prior year.

• Net profit per share for the period was ¥95.81, up from ¥87.28 year-over-year.

• Q3 quarter net sales up 13% YoY; operating profit up 17% YoY.

• Personnel expenses increased by ¥582M (+11% YoY) due to strategic hiring and salary increases.

Outlook and guidance

• Full-year forecast for fiscal 2025 projects net sales of ¥19,150 million (up 9.4%), operating profit of ¥4,800 million (up 12.6%), and net profit per share of ¥130.12.

• Three-year rolling plan targets net sales CAGR of 10.3% and operating profit CAGR of 15.7% through FY7/27.

• Aims to achieve operating profit of ¥10B by 2030, with continued investment in human capital and brand awareness.

• Dividend forecast for FY7/25 is ¥47 per share, maintaining a payout ratio of 35%+ and DOE of 10%+.

• No revisions have been made to previously announced forecasts.