TIS (3626) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 3.0% year-over-year to ¥275,558 million, with operating income up 0.4% to ¥30,509 million and net income attributable to owners up 2.6% to ¥20,840 million.

• Growth was driven by increased IT investment demand, especially in digital transformation, and the launch of a new three-year Medium-Term Management Plan focused on sustainable growth and value creation.

• Extraordinary income included a ¥4,558 million gain on sales of investment securities and extraordinary losses included a ¥3,770 million impairment loss, with specific items such as a ¥4,296 million gain and a ¥2,432 million loss detailed.

Financial highlights

• Gross profit increased 3.4% year-over-year to ¥75,841 million, with a gross profit ratio of 27.5% (+0.1pt YoY).

• Operating income margin declined slightly to 11.1% (-0.3pt YoY), impacted by unprofitable projects.

• Comprehensive income fell 8.9% year-over-year to ¥24,126 million.

• Basic EPS for the period was ¥89.44, up from ¥84.16 a year earlier.

• Total assets as of September 30, 2024, were ¥517,463 million, with net assets at ¥331,881 million and an equity ratio of 61.7%.

Outlook and guidance

• FY2025 full-year forecast: net sales ¥555,000 million (+1.1% YoY), operating income ¥66,500 million (+3.0%), net income attributable to owners ¥44,800 million (-8.3%), and basic EPS ¥192.55.

• No changes to previously announced earnings or dividend forecasts; total return ratio targeted at 50%.

• Management expects continued growth through high-value businesses and productivity enhancements, despite the end of large-scale development projects.