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Financial results presentation2335CUBE SYSTEM INC.Information and Communications, Services and Others

Supplementary Financial Results Information for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue remained broadly in line with the previous year, while operating income and net income increased, driven in part by improved profitability. For the fiscal year ending March 2027, revenue and operating income are expected to increase, while net income is projected to decline due to the absence of gains on sales of investment securities recorded in the previous year.

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Direction
Mixed performance
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Scale
177
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥18,498 million+0.8%
Operating profit¥1,558 million+12.9%
Ordinary income¥1,581 million+13.5%
Net income¥1,564 million+24.0%
Gross Profit Margin23.2 %
Operating profit margin8.4 %
Selling, general and administrative expenses¥2,738 million
Results for the three months of the current quarter
Period CoveredJanuary–March 2026
Net Sales
¥4,739 million
Gross profit
¥1,034 million
Operating profit
¥421 million
Ordinary income
¥422 million
Net income
¥487 million
Full-year earnings forecast
Net Sales
¥20,000 million
Operating profit
¥1,800 million
Ordinary income
¥1,810 million
Net income
¥1,500 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales94.9 %
Operating profit89.1 %
Ordinary income89.9 %
Net income128.2 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Some items were in line with the plan, while others fell short of expectations
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Improved margins in the businesses serving prime contractors and SIers¥216 million
  • Improved profitability at overseas subsidiaries¥55 million
  • Lower personnel expenses due to a change in the discount rate applied to retirement benefit obligations¥193 million
  • Increase in unprofitable projects in highly complex engagements¥-151 million
  • Expansion of production capacity¥-111 million
  • Investment in research and development¥-24 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Demand for IT investment is expected to remain firm. Specific assumptions for foreign exchange rates, raw material prices, interest rates and other figures: Not disclosed
New initiatives
  • Establishment of the Systems Consulting Office
  • Use of AI and productivity improvements by the AI Promotion Office of the Production Engineering Division
  • Full-scale service launch for H・CUBiC in April 2026
  • Service launch for AI-based automated ordering solutions in May 2026
  • Opening of the Shinagawa Innovation Hub
Key KPIsA metric the company considers important as a management benchmark.
  • ROE14 %
    Year on year against the same period last year+2.0 percentage points
  • Orders received¥18,555 million
    Year-on-year (%)0.3
  • Order backlog¥4,846 million
    Year-on-year (%)1.2
  • Equity ratio76.5 %
    Year on year against the same period last year+0.8 percentage points
  • Sales per employee¥23,415 thousand
    Year on year against the same period last year△¥263 thousand
  • Operating income per employee¥1,972 thousand
    Year on year against the same period last year+¥191 thousand
Segment results
Digital business
Net Sales
¥1,315 million
Operating profit
¥117 million
Year-on-Year Change in Revenue (%)62.7
Operating profit year-on-year_pct675.7
SI Business
Net Sales
¥7,731 million
Operating profit
¥711 million
Year-on-Year Change in Revenue (%)23.9
Operating profit year-on-year_pct42.9
Enhancement business
Net Sales
¥9,451 million
Operating profit
¥729 million
Year-on-Year Change in Revenue (%)-16.4
Operating profit year-on-year_pct-16
Business serving SIers
Net Sales
¥14,028 million
Operating profit
¥998 million
Year-on-Year Change in Revenue (%)1
Operating profit year-on-year_pct-4.5
Business for prime contractors
Net Sales
¥3,473 million
Operating profit
¥565 million
Year-on-Year Change in Revenue (%)-5.2
Operating profit year-on-year_pct99.2
Service delivery business
Net Sales
¥996 million
Operating profit
¥-5 million
Year-on-Year Change in Revenue (%)24
Financial targets
ROE target14% or higher
Actual ROE14.0%
Actual equity ratio76.5%
Orders received and order backlog
Orders received
¥18,555 million
Year-on-year (%)0.3
Order backlog
¥4,846 million
Record dateEnd of March 2026
Year-on-year (%)1.2
Number of stores and locations
Opened the Shinagawa Innovation Hub development center in September 2025. Number of stores and locations at fiscal year-end, and openings and closures: Not disclosed
Number of employees
Number of Employees988 People
Record date1 April 2026
Domestic employees
790 people
Record dateEnd of March 2026
Employees of overseas subsidiaries
148 people
Record dateEnd of March 2026
New graduate hiring
FY202570 People
Fiscal 202661 People
Annual Dividend
Fiscal year ending March 2026
Annual¥46
Interim¥22
End of period¥24
Planned for the fiscal year ending March 2027
Annual¥46
Payout ratio
Guideline50 %
Planned for the fiscal year ending March 202746.5 %
Fiscal year ending March 202644.5 %
DOE
Planned for the fiscal year ending March 20276.4 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥18,498 million (YoY +0.8%)
Operating profit¥1,558 million (YoY +12.9%)
Ordinary income¥1,581 million (YoY +13.5%)
Net income¥1,564 million (YoY +24.0%)
Gross Profit Margin23.2 %
Operating profit margin8.4 %
Selling, general and administrative expenses¥2,738 million
Results for the three months of the current quarterPeriod Covered January–March 2026 / Net Sales ¥4,739 million / Gross profit ¥1,034 million / Operating profit ¥421 million / Ordinary income ¥422 million / Net income ¥487 million
Full-year earnings forecastNet Sales ¥20,000 million / Operating profit ¥1,800 million / Ordinary income ¥1,810 million / Net income ¥1,500 million
Progress against full-year forecastNet Sales 94.9 % / Operating profit 89.1 % / Ordinary income 89.9 % / Net income 128.2 %
Self-assessment against the planSome items were in line with the plan, while others fell short of expectations
Segment resultsDigital business Net Sales ¥1,315 million / Operating profit ¥117 million / Year-on-Year Change in Revenue (%) 62.7 / Operating profit year-on-year_pct 675.7 / SI Business Net Sales ¥7,731 million / Operating profit ¥711 million / Year-on-Year Change in Revenue (%) 23.9 / Operating profit year-on-year_pct 42.9 / Enhancement business Net Sales ¥9,451 million / Operating profit ¥729 million / Year-on-Year Change in Revenue (%) -16.4 / Operating profit year-on-year_pct -16 / Business serving SIers Net Sales ¥14,028 million / Operating profit ¥998 million / Year-on-Year Change in Revenue (%) 1 / Operating profit year-on-year_pct -4.5 / Business for prime contractors Net Sales ¥3,473 million / Operating profit ¥565 million / Year-on-Year Change in Revenue (%) -5.2 / Operating profit year-on-year_pct 99.2 / Service delivery business Net Sales ¥996 million / Operating profit ¥-5 million / Year-on-Year Change in Revenue (%) 24
Breakdown of Factors Affecting the ChangeFactors Improved margins in the businesses serving prime contractors and SIers / Amount ¥216 million, Factors Improved profitability at overseas subsidiaries / Amount ¥55 million, Factors Lower personnel expenses due to a change in the discount rate applied to retirement benefit obligations / Amount ¥193 million, Factors Increase in unprofitable projects in highly complex engagements / Amount ¥-151 million, Factors Expansion of production capacity / Amount ¥-111 million, Factors Investment in research and development / Amount ¥-24 million
Key KPIsIndicator name ROE / Value 14 % / Year on year against the same period last year +2.0 percentage points, Indicator name Orders received / Value ¥18,555 million / Year-on-year (%) ¥0.3 million, Indicator name Order backlog / Value ¥4,846 million / Year-on-year (%) ¥1.2 million, Indicator name Equity ratio / Value 76.5 % / Year on year against the same period last year +0.8 percentage points, Indicator name Sales per employee / Value ¥23,415 thousand / Year on year against the same period last year △¥263 thousand, Indicator name Operating income per employee / Value ¥1,972 thousand / Year on year against the same period last year +¥191 thousand
Number of stores and locationsOpened the Shinagawa Innovation Hub development center in September 2025. Number of stores and locations at fiscal year-end, and openings and closures: Not disclosed
Number of employeesNumber of Employees 988 People / Record date 1 April 2026 / Domestic employees 790 people / Employees of overseas subsidiaries 148 people / New graduate hiring FY2025 70 People / Fiscal 2026 61 People
Assumptions Underlying the Business OutlookDemand for IT investment is expected to remain firm. Specific assumptions for foreign exchange rates, raw material prices, interest rates and other figures: Not disclosed
Financial targetsROE target 14% or higher / Actual ROE 14.0% / Actual equity ratio 76.5%
Annual DividendFiscal year ending March 2026 Annual ¥46 / Interim ¥22 / End of period ¥24 / Planned for the fiscal year ending March 2027 Annual ¥46
Payout ratioGuideline 50 % / Planned for the fiscal year ending March 2027 46.5 % / Fiscal year ending March 2026 44.5 % / DOE Planned for the fiscal year ending March 2027 6.4 %
Orders received and order backlogOrders received ¥18,555 million / Order backlog ¥4,846 million
New initiativesEstablishment of the Systems Consulting Office, Use of AI and productivity improvements by the AI Promotion Office of the Production Engineering Division, Full-scale service launch for H・CUBiC in April 2026, Service launch for AI-based automated ordering solutions in May 2026, Opening of the Shinagawa Innovation Hub
Items this document does not state (7)
Unit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating income increased due to improved margins in the businesses serving prime contractors and SIers, improved profitability at overseas subsidiaries, and lower personnel expenses resulting from a change in the discount rate applied to retirement benefit obligations. Factors reducing operating income included an increase in unprofitable projects in highly complex engagements, expansion of production capacity, and investment in research and development. Net income increased due to the recognition of gains on sales of investment securities.

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Supplementary Financial Results Information for the Fiscal Year Ending March 2026 | CUBE SYSTEM INC. (2335) timely disclosure | Komori