NTT (9432) Q4 2025 earnings summary

Executive summary

• Operating revenue for FY2024 reached a record ¥13,704.7 billion, up 2.5% year-on-year, but operating profit and net profit declined by 14.2% and 21.8%, respectively, due to lower telecom service revenue and higher costs.

• FY2025 guidance targets renewed growth in revenue and operating profit, with continued investment in customer base, network quality, enterprise businesses, and global expansion.

• Major initiatives include a tender offer for NTT DATA Group, expansion of IOWN and AI-driven services, and sustainability efforts.

• Dividend and share buyback programs were expanded, with the annual dividend per share forecasted at ¥5.3 and up to ¥200 billion in buybacks planned.

• Board and governance reforms, including the appointment of a non-Japanese board member and transition to an Audit & Supervisory Committee, are underway.

Financial highlights

• FY2024 operating revenue: ¥13,704.7 billion (+2.5% YoY); operating profit: ¥1,649.6 billion (−14.2% YoY); EBITDA: ¥3,239.3 billion (−5.2% YoY); net profit: ¥1,000.0 billion (−21.8% YoY).

• FY2025 forecasts: revenue ¥14,190.0 billion (+3.5%), EBITDA ¥3,390.0 billion (+4.7%), operating profit ¥1,770.0 billion (+7.3%), net profit ¥1,040.0 billion (+4.0%).

• Basic EPS was ¥11.96, down from ¥15.09; ROE declined to 10.0% from 13.9%.

• Asset sales and FX contributed to results, but prior year gains were not repeated.

• Dividend per share increased to ¥5.20, with a payout ratio of 43.5%.

Outlook and guidance

• FY2025 and FY2026 expect growth in all key financial metrics, driven by enterprise business expansion, operational reforms, and global solutions.

• Dividend forecast for FY2025 and FY2026 is ¥5.3 per share, marking the 15th consecutive year of increases.

• Share buybacks up to ¥200 billion planned for FY2025 to enhance shareholder returns.

• Medium-term strategy aims for accelerated profit growth toward FY2027, with ongoing high-level growth investments.