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Presentation materials for financial results339APROGRESS TECHNOLOGIES GROUP,Inc.Information and Communications, Services and Others

Second Quarter Financial Results Presentation for the Fiscal Year Ending February 2027

For the first half of the fiscal year ending February 2027, revenue rose 0.9% year on year, while adjusted operating profit declined 9.6%. The company assesses that both revenue and profit are progressing in line with its full-year forecasts.

Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
262
Millions of yen (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending February 2027, second quarter10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,000 million+0.9%
Operating profit¥564 million-31.7%
Ordinary income¥531 million -33.0%profit before tax
Net income¥349 million-34.5%
Gross Profit Margin42.4
Operating profit margin18.8
Selling, general and administrative expenses¥712 million
Results for the three months of the current quarter
Revenue
¥1,465 million+2.5%
Gross profit
¥615 million+1.2%
Operating profit
¥247 million-45.7%
Income before taxes
¥233 million-46.9%
Profit for the period
¥155 million-47.6%
Full-year earnings forecast
Revenue
¥6,904 million
Gross profit
¥3,223 million
Selling, general and administrative expenses
¥1,601 million
Operating profit
¥1,614 million
Income before taxes
¥1,550 million
Profit for the period
¥1,008 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。
Revenue43.5
Gross profit39.4
Selling, general and administrative expenses44.5
Operating profit34.9
Adjusted operating profit34.9
Income before taxes34.3
Profit for the period34.6
Solutions business revenue42.4
Solutions business gross profit40.4
Digital Twin business revenue26.1
Digital twin business gross profit20.2
Engineering business revenue47.4
Engineering business gross profit41.6
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in compensation received-¥200 million (Other income)
Personnel Expenses+¥33 million (Selling, general and administrative expenses)
Recruitment costs+¥5 million (Selling, general and administrative expenses)
Fees and remuneration paid+¥6 million (Selling, general and administrative expenses)
Depreciation and amortization+¥11 million (Selling, general and administrative expenses)
Other SG&A expensesOrdinary loss of ¥7 million
New initiatives
  • Strengthen AI × digital twin projects
  • Shift of personnel to the solutions business
  • Expansion into industries other than automotive, including defense, social infrastructure and high-tech devices
  • Strengthening Collaboration with Partner Companies
  • Expansion of graduate recruitment for hires joining in April 2027
  • Recruitment and development of SA/PM talent
Key KPIsA metric the company considers important as a management benchmark.
Solution revenue mix, including digital twins
59.5 %
yoy_change_pt1.7
Solutions business headcount
221 people+12.7%
Engineering business headcount
326 people
Number of new graduates receiving job offers
74 people
Progress toward full-year plan82.2
Net interest-bearing debt
¥613 million
Equity ratio
54.6 %
yoy_change_pt2.3
Goodwill-to-equity ratio
83.5 %
yoy_change_pt1
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Revenue per employee in the solution business
¥1,337 thousand
Quarter-on-quarter_pct-2.2
Period_on_period_pct-10.3
Solutions business headcount
221 people
Year on year_pct12.7
Segment results
Solutions Business
Revenue
¥1,699 million+4.6%
Gross profit
¥883 million-0.5%
Digital Twin Business
Revenue
¥86 million-7.5%
Gross profit
¥42 million+23.5%
Engineering Business
Revenue
¥1,213 million-3.3%
Gross profit
¥346 million-6.5%
Medium-term management plan targets
Solution business revenue mix65.0%～70.0%
Digital twin business revenue mix7.0%～10.0%
Consolidated operating margin30.0%
Financial targets
Consolidated operating margin30.0% (medium-term target)
Market Size / Share
Manufacturing DX market
FY2023¥387.0 billion
Forecast for FY2030¥906.0 billion
2023 TAM¥387.0 billion
2023 SAM¥286.3 billion
2023 SOM¥90.5 billion
2030 SAM¥670.4 billion
2030 SOM¥211.8 billion
Number of employees
625 People consolidated, end-August 2026
By business
Solutions Business221
Engineering Business326
Digital Twin Business5
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending February 2027, second quarter
Net Sales¥3,000 million (YoY +0.9%)
Operating profit¥564 million (YoY -31.7%)
Ordinary income¥531 million (profit before tax) (YoY -33.0%)
Net income¥349 million (YoY -34.5%)
Gross Profit Margin42.4
Operating profit margin18.8
Selling, general and administrative expenses¥712 million
Results for the three months of the current quarterRevenue ¥1,465 million (YoY +2.5%) / Gross profit ¥615 million (YoY +1.2%) / Operating profit ¥247 million (YoY -45.7%) / Income before taxes ¥233 million (YoY -46.9%) / Profit for the period ¥155 million (YoY -47.6%)
Full-year earnings forecastRevenue ¥6,904 million / Gross profit ¥3,223 million / Selling, general and administrative expenses ¥1,601 million / Operating profit ¥1,614 million / Income before taxes ¥1,550 million / Profit for the period ¥1,008 million
Progress against full-year forecastRevenue 43.5 / Gross profit 39.4 / Selling, general and administrative expenses 44.5 / Operating profit 34.9 / Adjusted operating profit 34.9 / Income before taxes 34.3 / Profit for the period 34.6 / Solutions business revenue 42.4 / Solutions business gross profit 40.4 / Digital Twin business revenue 26.1 / Digital twin business gross profit 20.2 / Engineering business revenue 47.4 / Engineering business gross profit 41.6
Self-assessment against the planProgress in line with plan
Segment resultsSolutions Business Revenue ¥1,699 million (YoY +4.6%) / Gross profit ¥883 million (YoY -0.5%) / Digital Twin Business Revenue ¥86 million (YoY -7.5%) / Gross profit ¥42 million (YoY +23.5%) / Engineering Business Revenue ¥1,213 million (YoY -3.3%) / Gross profit ¥346 million (YoY -6.5%)
Breakdown of Factors Affecting the ChangeYear-on-year change in compensation received -¥200 million (Other income) / Personnel Expenses +¥33 million (Selling, general and administrative expenses) / Recruitment costs +¥5 million (Selling, general and administrative expenses) / Fees and remuneration paid +¥6 million (Selling, general and administrative expenses) / Depreciation and amortization +¥11 million (Selling, general and administrative expenses) / Other SG&A expenses Ordinary loss of ¥7 million
Key KPIsSolution revenue mix, including digital twins 59.5 % / Solutions business headcount 221 people (YoY +12.7%) / Engineering business headcount 326 people / Number of new graduates receiving job offers 74 people / Net interest-bearing debt ¥613 million / Equity ratio 54.6 % / Goodwill-to-equity ratio 83.5 %
Unit price and quantity metricsRevenue per employee in the solution business ¥1,337 thousand / Solutions business headcount 221 people
Number of employees625 People (consolidated, end-August 2026)
Medium-term management plan targetsSolution business revenue mix 65.0%～70.0% / Digital twin business revenue mix 7.0%～10.0% / Consolidated operating margin 30.0% / Target fiscal year Not disclosed
Financial targetsConsolidated operating margin 30.0% (medium-term target)
Market Size / ShareManufacturing DX market FY2023 ¥387.0 billion / Forecast for FY2030 ¥906.0 billion / 2023 TAM ¥387.0 billion / 2023 SAM ¥286.3 billion / 2023 SOM ¥90.5 billion / 2030 SAM ¥670.4 billion / 2030 SOM ¥211.8 billion
New initiativesStrengthen AI × digital twin projects, Shift of personnel to the solutions business, Expansion into industries other than automotive, including defense, social infrastructure and high-tech devices, Strengthening Collaboration with Partner Companies, Expansion of graduate recruitment for hires joining in April 2027, Recruitment and development of SA/PM talent
Items this document does not state (9)
Number of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.

The timing of acceptance for solution projects was concentrated in the second half, while higher costs, including labor costs, and increased expenses associated with strengthening the organization and hiring personnel weighed on profit. Although customers delayed budget planning because of uncertainty over the outlook for the manufacturing industry, demand for the digitalization of design and development processes remained solid.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Second Quarter Financial Results Presentation for the Fiscal Year Ending February 2027 | PROGRESS TECHNOLOGIES GROUP,Inc. (339A) timely disclosure | Komori