SHIFT (3697) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of ¥129.8B in FY2025, up 17.3% year-over-year, with operating profit rising 48.3% to ¥15.6B and profit attributable to owners of parent up 74.3% to ¥8.94B, driven by strong demand for DX and expansion in core business areas.

• Outperformed the market in all segments, driven by large-scale project wins, strong demand for DX, and successful M&A integration.

• All key performance indicators, including sales per customer, customer count, unit price per engineer, and number of engineers, showed steady growth.

• Expanded headcount and reinforced sales and recruiting infrastructure, targeting further growth and transformation toward the "SHIFT3000" vision.

• Nearly all ambitious sales and profit targets for the year were achieved, with achievement rates above 99% for net sales and exceeding 104% for profits.

Financial highlights

• Net sales: ¥129,819 million (+17.3% YoY); Operating profit: ¥15,628 million (+48.3% YoY); Ordinary profit: ¥15,181 million (+41.2% YoY); Profit attributable to owners of parent: ¥8,935 million (+74.3% YoY).

• Gross profit increased to ¥45,016 million from ¥35,360 million year-over-year.

• Comprehensive income nearly doubled to ¥9,365 million (+94.4% YoY).

• Operating profit margin improved to 12.0% from 9.5% in the prior year.

• SG&A ratio remained stable at 22.6%, with strategic investments in sales and hiring.

Outlook and guidance

• FY2026 targets net sales of ¥150B and adjusted operating profit of ¥20B, with continued focus on high-margin services, M&A acceleration, and large-scale project acquisition.

• Adjusted profit attributable to owners of parent is forecast at ¥13,500 million (+24.3% YoY).

• The company will intensify investments in engineer recruitment and business development to accelerate growth and achieve long-term sales milestones (SHIFT2000 and SHIFT3000).

• New disclosure of adjusted profit metrics to better reflect core business performance, excluding M&A-related expenses and amortization.