Komori
Earnings presentation2335CUBE SYSTEM INC.Information and Communications, Services and Others

Supplementary Explanatory Materials for the Second Quarter (Interim Period) Financial Results for the Fiscal Year Ending March 2027

For the six months ended September 2026, revenue was largely unchanged year on year, while operating profit, ordinary profit and interim net profit all declined. Modernization and high-value-added projects grew, but unprofitable projects and investment in AI, consulting and research and development weighed on profit.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-2.8
Year-on-year change in operating income (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥9,064 million-0.9%
Operating profit¥710 million-2.8%
Ordinary income¥704 million-4.5%
Net income¥515 million-7.1%
Selling, general and administrative expenses¥1,398 million
Gross Profit Margin
Rate23.3%
Year-on-year change (points)Down 0.5 percentage points from 23.8% in the prior-year period
Operating profit margin
Rate7.8%
Year-on-year change (points)Down 0.2 percentage points from 8.0% in the prior-year period
Results for the three months of the current quarter
Net Sales
¥4,512 million
Gross profit
¥1,042 million
Operating profit
¥354 million
Ordinary income
¥349 million
Net income
¥293 million
Selling, general and administrative expenses
¥687 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 Sales45.3%
Operating profit39.4%
Ordinary income38.9%
Net income34.4%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Improved profitability in the service provision business and the business serving prime contractors
  • Impact of unprofitable projects and increased losses at subsidiaries
  • Strengthening growth areas and R&D investment
  • Expenses related to the capital and business alliance and the sale of subsidiary shares
  • Year-on-year change in operating profit-¥20 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Only qualitative assumptions regarding the demand environment and changes in customers' in-house production and development needs. Numerical assumptions: Not disclosed
New initiatives
  • Launch of 2 cloud migration support services
  • Launch of the HCA-AI engineer search service
  • Commercialization of an AI automated ordering system
  • Promoting the use of the internally developed generative AI tools InCUBEator, Copilot and Claude
  • Capital and business alliance with システムクリエイト
  • ¥79 million investment in research and development themes
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥9,315 million
    Year on year against the same period last year△2.3%
  • Order backlog¥5,096 million
    Year on year against the same period last year△1.6%
  • Domestic employees807 people
    Year on year against the same period last yearDown 15 people
  • Employees of overseas subsidiaries148 people
    Year on year against the same period last year+7 people
  • Sales per employee¥11,122 thousand
    Year on year against the same period last yearDown ¥110 thousand
  • Operating income per employee¥879 thousand
    Year on year against the same period last yearDown ¥10 thousand
  • Equity ratio77.9 %
    Year on year against the same period last year+3.0 percentage points
Segment results
Digital business
Net Sales
¥688 million+15.2%
Operating profit
¥33 million-36.3%
SI Business
Net Sales
¥3,893 million+4.7%
Operating profit
¥377 million+53.2%
Enhancement business
Net Sales
¥4,483 million-7.1%
Operating profit
¥298 million-30.8%
Financial services
Net Sales
¥2,815 million-0.6%
Operating profit
¥155 million-41.1%
Distribution
Net Sales
¥1,543 million+3.2%
Operating profit
¥205 million+20.6%
Transportation and communications
Net Sales
¥1,259 million+26.2%
Operating profit
¥135 million-3.9%
Manufacturing
Net Sales
¥965 million+0.8%
Operating profit
¥46 million-12.2%
Government agencies
Net Sales
¥842 million-31.9%
Operating profit
¥90 million+206.2%
Other industries
Net Sales
¥1,638 million+1.1%
Operating profit
¥76 million+4.2%
Business serving SIers
Net Sales
¥6,554 million-4.9%
Operating profit
¥343 million-31.4%
Business for prime contractors
Net Sales
¥1,833 million+4.3%
Operating profit
¥303 million+9.6%
Service delivery business
Net Sales
¥676 million+38.1%
Operating profit
¥63 million
Medium-term management plan targets
Mentions the medium- to long-term management vision “VISION2026” and the targets of the second medium-term management plan. Numerical targets: Not disclosed
Financial targets
Reports an equity ratio of 77.9%. Financial targets: Not disclosed
Orders received and order backlog
Orders received
¥9,315 million-2.3%
Order backlog
¥5,096 million-1.6%
Number of employees
Number of Employees807 in Japan, 148 at overseas subsidiaries, 955 in total (as of the end of September 2026)
Change during the periodDown 15 in Japan, up 7 overseas
Annual Dividend
Annual dividend per share¥46.0 (planned)
Interim¥22.0
End of period¥24.0
Payout ratio
Consolidated dividend payout ratio of approximately 50%. Planned dividend payout ratio for the fiscal year ending March 2027: 46.5%; dividend-on-equity ratio: 6.4%
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥9,064 million (YoY -0.9%)
Operating profit¥710 million (YoY -2.8%)
Ordinary income¥704 million (YoY -4.5%)
Net income¥515 million (YoY -7.1%)
Gross Profit MarginRate 23.3% / Year-on-year change (points) Down 0.5 percentage points from 23.8% in the prior-year period
Operating profit marginRate 7.8% / Year-on-year change (points) Down 0.2 percentage points from 8.0% in the prior-year period
Selling, general and administrative expenses¥1,398 million
Results for the three months of the current quarterNet Sales ¥4,512 million / Gross profit ¥1,042 million / Operating profit ¥354 million / Ordinary income ¥349 million / Net income ¥293 million / Selling, general and administrative expenses ¥687 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 45.3% / Operating profit 39.4% / Ordinary income 38.9% / Net income 34.4%
Segment resultsDigital business Net Sales ¥688 million (YoY +15.2%) / Operating profit ¥33 million (YoY -36.3%) / SI Business Net Sales ¥3,893 million (YoY +4.7%) / Operating profit ¥377 million (YoY +53.2%) / Enhancement business Net Sales ¥4,483 million (YoY -7.1%) / Operating profit ¥298 million (YoY -30.8%) / Financial services Net Sales ¥2,815 million (YoY -0.6%) / Operating profit ¥155 million (YoY -41.1%) / Distribution Net Sales ¥1,543 million (YoY +3.2%) / Operating profit ¥205 million (YoY +20.6%) / Transportation and communications Net Sales ¥1,259 million (YoY +26.2%) / Operating profit ¥135 million (YoY -3.9%) / Manufacturing Net Sales ¥965 million (YoY +0.8%) / Operating profit ¥46 million (YoY -12.2%) / Government agencies Net Sales ¥842 million (YoY -31.9%) / Operating profit ¥90 million (YoY +206.2%) / Other industries Net Sales ¥1,638 million (YoY +1.1%) / Operating profit ¥76 million (YoY +4.2%) / Business serving SIers Net Sales ¥6,554 million (YoY -4.9%) / Operating profit ¥343 million (YoY -31.4%) / Business for prime contractors Net Sales ¥1,833 million (YoY +4.3%) / Operating profit ¥303 million (YoY +9.6%) / Service delivery business Net Sales ¥676 million (YoY +38.1%) / Operating profit ¥63 million
Breakdown of Factors Affecting the ChangeFactors Improved profitability in the service provision business and the business serving prime contractors / Amount Not disclosed, Factors Impact of unprofitable projects and increased losses at subsidiaries / Amount Not disclosed, Factors Strengthening growth areas and R&D investment / Amount Not disclosed, Factors Expenses related to the capital and business alliance and the sale of subsidiary shares / Amount Not disclosed, Factors Year-on-year change in operating profit / Amount -¥20 million
Key KPIsIndicator name Orders received / Value ¥9,315 million / Year on year against the same period last year △2.3%, Indicator name Order backlog / Value ¥5,096 million / Year on year against the same period last year △1.6%, Indicator name Domestic employees / Value 807 people / Year on year against the same period last year Down 15 people, Indicator name Employees of overseas subsidiaries / Value 148 people / Year on year against the same period last year +7 people, Indicator name Sales per employee / Value ¥11,122 thousand / Year on year against the same period last year Down ¥110 thousand, Indicator name Operating income per employee / Value ¥879 thousand / Year on year against the same period last year Down ¥10 thousand, Indicator name Equity ratio / Value 77.9 % / Year on year against the same period last year +3.0 percentage points
Number of employeesNumber of Employees 807 in Japan, 148 at overseas subsidiaries, 955 in total (as of the end of September 2026) / Change during the period Down 15 in Japan, up 7 overseas
Assumptions Underlying the Business OutlookOnly qualitative assumptions regarding the demand environment and changes in customers' in-house production and development needs. Numerical assumptions: Not disclosed
Medium-term management plan targetsMentions the medium- to long-term management vision “VISION2026” and the targets of the second medium-term management plan. Numerical targets: Not disclosed
Financial targetsReports an equity ratio of 77.9%. Financial targets: Not disclosed
Annual DividendAnnual dividend per share ¥46.0 (planned) / Interim ¥22.0 / End of period ¥24.0
Payout ratioConsolidated dividend payout ratio of approximately 50%. Planned dividend payout ratio for the fiscal year ending March 2027: 46.5%; dividend-on-equity ratio: 6.4%
Orders received and order backlogOrders received ¥9,315 million (YoY -2.3%) / Order backlog ¥5,096 million (YoY -1.6%)
New initiativesLaunch of 2 cloud migration support services, Launch of the HCA-AI engineer search service, Commercialization of an AI automated ordering system, Promoting the use of the internally developed generative AI tools InCUBEator, Copilot and Claude, Capital and business alliance with システムクリエイト, ¥79 million investment in research and development themes
Items this document does not state (8)
Self-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition 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.

Modernization projects and high-value-added areas expanded, but revenue was flat because of a decline in projects for organizations affiliated with local governments. Operating profit declined despite improved profitability in the service provision business and the business serving prime contractors, due to efforts to strengthen the AI and consulting areas, investment in research and development, and the impact of certain unprofitable projects.

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