We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The earnings call highlights several positive outcomes, including record revenue and profit growth, strong performance in IT services, and significant free cash flow increase. However, these are balanced by notable challenges such as losses in the submarine cable business and investment outflows. Thus, the overall sentiment is mixed, with a balance of achievements and challenges.
In the recent call, the company provided guidance for the fiscal year ending March 2026, projecting revenue of JPY3.36 billion and a non-GAAP operating profit (OP) of JPY320 billion. This represents an increase of JPY20 billion from the mid-term management plan target, despite macroeconomic uncertainties. The adjusted OP is expected to be JPY310 billion, factoring in ongoing structural reforms. The IT services segment is projected to post revenue of JPY2.15 trillion with an adjusted OP of JPY263 billion, while social infrastructure is expected to achieve revenue of JPY1.16 trillion and adjusted OP of JPY100 billion. The company also noted plans to increase investment in growth areas while maintaining a disciplined approach to capital allocation, applying cash ROIC evaluation for M&A transactions. The guidance reflects a continued focus on increasing profitability, even amid challenging conditions, and highlights strategic efforts to enhance operational efficiency and future growth potential.
Revenue for FY March 2025 was JPY3,423.4 billion, with a non-GAAP operating profit (OP) of JPY311.3 billion, achieving the mid-term management plan's targets a year ahead of schedule. Revenue increased by 5.3% year-on-year, and non-GAAP OP increased by JPY98.9 billion.
International IT business OP increased due to improved profitability, mainly attributable to Avaloq. Domestic IT services revenue excluding NEC facilities increased by 9%, and profitability improved by 2.3%.
Free cash flow from operating activities increased by JPY73.2 billion, leading to a total increase of JPY18 billion year-on-year, driven by an improved cash conversion cycle.
Blue Stellar reported a 44% increase in revenue from the previous year, with a significant improvement in profitability.
The company achieved its mid-term management plan targets for non-GAAP net profit and EBITDA one year ahead of schedule.
Thank you for joining us today. I would like to cover our financial results for FY ended March 2025 and explain our forecast for FY ending March 2026. Here is our agenda. Financial results for FY ended March 2025. Page 4, key takeaways. In FY March 2025, revenue was JPY3,423.4 billion and non-GAAP OP was JPY311.3 billion. We achieved the non-GAAP OP target set out in our mid-term management plan one year ahead of schedule. Excluding the impact of the deconsolidation of JAE, revenue increased 5.3% year-on-year.
Non-GAAP OP increased by JPY98.9 billion, exceeding our expectations. Non-GAAP OP for FY March 2026 is expected to reach JPY320 billion, an increase of JPY20 billion from the mid-term management plan target. This plan factors in the macroeconomic uncertainties. Even given the environment, we will continue to steadily increase profits. Page 5, summary of financial results. Adjusted operating profit was JPY287.2 billion, an improvement of JPY63.6 billion year-on-year. In addition to non-GAAP operating profit, we also achieved our mid-term management plan targets for non-GAAP net profit and EBITDA one year ahead of schedule. There will be no change to the dividend per share from the amount already announced.
The amounts shown are based on the basis before the stock split, which took effect on April 1, 2025. Page 6, year-on-year change in adjusted and non-GAAP operating profit. Adjusted OP for FY ended March 2024 was JPY223.6 billion and non-GAAP OP was JPY227.6 billion. Started from this, as you can see, we made significant improvements in IT services and social infrast...
