I'LL (3854) Q4 2025 earnings summary

Executive summary

• Net sales and operating profit reached record highs, with FY7/25 net sales at ¥19,294.9M (+10.2% YoY), operating profit at ¥4,818.8M (+13.0% YoY), and net income at ¥3,488.4M (+20.8% YoY).

• Strong order momentum, especially in large-scale projects, and recurring revenue growth drove performance, supported by the “CROSS-OVER” strategy integrating real and online solutions.

• Personnel expenses increased due to hiring 67 new graduates and 27 mid-career professionals.

• The Impact Neutralization Trust was established to increase the circulating share ratio, with 1,250,000 shares acquired and sold during the year.

Financial highlights

• Operating profit margin improved to 25.0% (up from 24.4% YoY); gross profit was ¥10,659M (+9% YoY) with a margin of 55.2%.

• Recurring revenue and recurring gross profit both grew by 15% YoY.

• Comprehensive income increased 27.2% YoY to ¥3,613.1M.

• Equity ratio rose to 72% and net assets per share increased to ¥450.94.

• Cash and cash equivalents at year-end were ¥7,402.4M, up ¥739.1M from the prior year.

Outlook and guidance

• FY7/26-28 plan targets net sales of ¥24,300M and operating profit of ¥6,312M by FY7/28 (CAGR 8-9%).

• FY7/26 guidance: net sales ¥20,700M (+7.3%), operating profit ¥5,250M (+8.9%), net income ¥3,725M (+6.8%).

• Dividend per share for FY7/26 forecast at ¥60, with a payout ratio target of 35%+ and DOE of 10%+.

• Net sales expected to rise in the latter half of FY7/26, driven by recurring revenue and engineer training.