SMS (2175) Q2 2026 earnings summary

Executive summary

• Achieved year-over-year growth in both sales and profits for 1H FY03/26, with profits on track to meet full-year guidance despite external headwinds in the Career and Overseas Segments.

• Net sales for the six months ended September 30, 2025, rose 5.1% year-over-year to ¥33,475 million, driven by growth in Career and Kaipoke Businesses.

• Operating profit increased 22.9% year-over-year to ¥4,391 million, with profit attributable to owners of parent up 36.0% to ¥4,992 million.

• Transition to a new management structure announced, with Masaki Takahata appointed as President and CEO effective January 1, 2026.

• The company focuses on providing information infrastructure for an aging society, addressing labor shortages, management efficiency, and quality of life improvements.

Financial highlights

• Net sales for 1H FY03/26 rose 5% year-over-year to JPY 33,475 million.

• Operating income increased 23% year-over-year to JPY 4,391 million.

• Ordinary income grew 17% year-over-year to JPY 5,750 million.

• Net income surged 36% year-over-year to JPY 4,992 million.

• Basic and diluted EPS for the period were ¥60.29, compared to ¥42.84 in the prior year.

Outlook and guidance

• On track to achieve sales growth for the 22nd consecutive year.

• Full-year forecast for FY2026 remains unchanged: net sales ¥67,544 million (+10.8%), operating profit ¥7,287 million (+15.0%), ordinary profit ¥9,468 million (+13.3%), profit attributable to owners of parent ¥7,029 million (+16.1%), and EPS ¥84.88.

• Profits are expected to meet full-year guidance despite challenges in certain segments.

• Medium-term targets include a 15% CAGR in EPS and 20% ROE by FY03/31.