Komori
Earnings presentation3988SYS Holdings Co.,Ltd.Information and Communications, Services and Others

Briefing Materials for the Fiscal Year Ending July 2026 Results

For the fiscal year ended July 2026, revenue and earnings increased on growth in the existing business and contributions from M&A, although revenue, operating income and net income all fell short of the initial forecasts. For the fiscal year ending July 2027, the company expects higher revenue and earnings as it pursues reforms in recruitment, sales and project management.

Worth reading
87Important
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
11.5
% (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending July 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,673 million+11.5%
Operating profit¥797 million+13.1%
Ordinary income¥857 million
Net income¥548 million+29.5%
Operating profit margin5.1 %
Results for the three months of the current quarter
First quarter of the fiscal year ending July 2026
Net Sales
¥3,758 million
Operating profit
¥96 million
Net income
¥57 million
Second quarter of the fiscal year ending July 2026
Net Sales
¥3,858 million
Operating profit
¥226 million
Net income
¥130 million
Third quarter of the fiscal year ending July 2026
Net Sales
¥4,040 million
Operating profit
¥212 million
Net income
¥131 million
Fourth quarter of the fiscal year ending July 2026
Net Sales
¥4,016 million
Operating profit
¥262 million
Net income
¥228 million
Full-year earnings forecast
Fiscal year ending July 2027
Net Sales
¥18,000 million
Operating profit
¥1,133 million
Ordinary income
¥1,119 million
Profit attributable to owners of the parent
¥664 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Missed budget and fell short of the initial forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Business Expansion through M&AApproximately ¥97 million (contribution to revenue)
  • Loss-making projects16 projects, approximately ¥96 million
  • Poor performance at 7 operating companies¥144 million lower year on year, ¥54 million lower than budget
  • Higher revenue from the existing business
  • Higher order unit prices
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • 7.7 % increase June 2026
    AssumptionsInformation services industry revenue
  • 3 % increase
    AssumptionsProjected software investment spending related to automotive ECUs
  • 22.8 % increase
    AssumptionsProjected software investment spending related to material handling equipment, machine tools and other equipment
  • 12.6 % increase
    AssumptionsProjected software investment spending related to the power and financial sectors
New initiatives
  • Group Reorganization
  • Reforms in recruitment and training
  • Project management reforms
  • Merger plan involving 2 companies to address issues through scale
  • Plan to make 2 companies sub-subsidiaries through sales collaboration
  • Obtaining Ignition certified integrator certification and expanding SCADA projects
  • Relocation of the Chubu office
Key KPIsA metric the company considers important as a management benchmark.
  • Number of hires164 People
    Year on year against the same period last year-43.0%
  • Number of M&A transactions completed1 companies
    Year on year against the same period last year-2.0%
  • Average overtime hours13.7 Time
    Year on year against the same period last year-1.0%
  • Paid leave utilization rate72.6 %
    Year on year against the same period last year+2.5%
  • Engagement score55.9 Score
  • Percentage of female employees26.7 %
Medium-term management plan targets
Plan nameSYSTarget2028
Fiscal year ending July 2028
Net Sales
¥22,050 million
Operating profit
¥1,500 million
Ordinary income
¥1,480 million
Profit attributable to owners of the parent
¥920 million
ROE
17.3 %
Comparison with actual resultsComparison of actual results for the fiscal year ended July 2026 and the forecast for the fiscal year ending July 2027 with the plan
Financial targets
ROE
Actual results for the fiscal year ended July 202613.7 %
Forecast for the fiscal year ending July 202714.7 %
Plan for the fiscal year ending July 202817.3 %
Market Size / Share
Information services industry revenueUp 7.7% (Ministry of Internal Affairs and Communications survey)
Engagement comparisonTop 27% among more than 10,000 companies
Number of employees
Change during the periodThe total number of employees avoided a net decline at fiscal year-end
Annual Dividend
Fiscal year ending July 2026
¥9 per share
BreakdownRegular dividend: ¥9.00
Forecast for the fiscal year ending July 2027
¥9 per share
BreakdownRegular dividend: ¥9.00
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending July 2026
Net Sales¥15,673 million (YoY +11.5%)
Operating profit¥797 million (YoY +13.1%)
Ordinary income¥857 million
Net income¥548 million (YoY +29.5%)
Operating profit margin5.1 %
Results for the three months of the current quarterFirst quarter of the fiscal year ending July 2026 Net Sales ¥3,758 million / Operating profit ¥96 million / Net income ¥57 million / Second quarter of the fiscal year ending July 2026 Net Sales ¥3,858 million / Operating profit ¥226 million / Net income ¥130 million / Third quarter of the fiscal year ending July 2026 Net Sales ¥4,040 million / Operating profit ¥212 million / Net income ¥131 million / Fourth quarter of the fiscal year ending July 2026 Net Sales ¥4,016 million / Operating profit ¥262 million / Net income ¥228 million
Full-year earnings forecastFiscal year ending July 2027 Net Sales ¥18,000 million / Operating profit ¥1,133 million / Ordinary income ¥1,119 million / Profit attributable to owners of the parent ¥664 million
Self-assessment against the planMissed budget and fell short of the initial forecast
Breakdown of Factors Affecting the ChangeFactors Business Expansion through M&A / Amount Approximately ¥97 million (contribution to revenue), Factors Loss-making projects / Amount 16 projects, approximately ¥96 million, Factors Poor performance at 7 operating companies / Amount ¥144 million lower year on year, ¥54 million lower than budget, Factors Higher revenue from the existing business / Amount Not disclosed, Factors Higher order unit prices / Amount Not disclosed
Key KPIsIndicator name Number of hires / Value 164 People / Year on year against the same period last year -43 People, Indicator name Number of M&A transactions completed / Value 1 companies / Year on year against the same period last year -2 companies, Indicator name Average overtime hours / Value 13.7 Time / Year on year against the same period last year -1 Time, Indicator name Paid leave utilization rate / Value 72.6 % / Year on year against the same period last year 2.5 %, Indicator name Engagement score / Value 55.9 Score / Year on year against the same period last year Not disclosed, Indicator name Percentage of female employees / Value 26.7 % / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees Not disclosed / Change during the period The total number of employees avoided a net decline at fiscal year-end
Assumptions Underlying the Business OutlookAssumptions Information services industry revenue / Value 7.7 % increase (June 2026), Assumptions Projected software investment spending related to automotive ECUs / Value 3 % increase, Assumptions Projected software investment spending related to material handling equipment, machine tools and other equipment / Value 22.8 % increase, Assumptions Projected software investment spending related to the power and financial sectors / Value 12.6 % increase
Medium-term management plan targetsPlan name SYSTarget2028 / Fiscal year ending July 2028 Net Sales ¥22,050 million / Operating profit ¥1,500 million / Ordinary income ¥1,480 million / Profit attributable to owners of the parent ¥920 million / ROE 17.3 % / Comparison with actual results Comparison of actual results for the fiscal year ended July 2026 and the forecast for the fiscal year ending July 2027 with the plan
Financial targetsROE Actual results for the fiscal year ended July 2026 13.7 % / Forecast for the fiscal year ending July 2027 14.7 % / Plan for the fiscal year ending July 2028 17.3 %
Annual DividendFiscal year ending July 2026 ¥9 per share / Forecast for the fiscal year ending July 2027 ¥9 per share
Market Size / ShareInformation services industry revenue Up 7.7% (Ministry of Internal Affairs and Communications survey) / Engagement comparison Top 27% among more than 10,000 companies
New initiativesGroup Reorganization, Reforms in recruitment and training, Project management reforms, Merger plan involving 2 companies to address issues through scale, Plan to make 2 companies sub-subsidiaries through sales collaboration, Obtaining Ignition certified integrator certification and expanding SCADA projects, Relocation of the Chubu office
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSegment resultsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookPayout 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 company cites growth in the existing business, business expansion through M&A and continued demand for digital transformation as factors behind the revenue increase. Factors behind the decline in earnings included failure to meet recruitment targets, an increase in employee departures, 16 loss-making projects, poor performance at 7 operating companies and failure to meet the procurement plan for business partners. Factors contributing to the increase included higher revenue from the existing business, higher order unit prices and earlier deployment resulting from revised recruitment standards.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Briefing Materials for the Fiscal Year Ending July 2026 Results | SYS Holdings Co.,Ltd. (3988) timely disclosure | Komori