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Earnings presentation4420eSOL Co.,Ltd.Information and Communications, Services and Others

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026

In the second quarter of FY2026 ending December, revenue increased 12.6% year on year and operating profit increased 32.8%. Revenue fell short of the first-half plan, while operating profit, ordinary profit and net profit exceeded plan.

Worth reading
61In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
710
¥ million (year-on-year change in net sales)
Wording
Definitive
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,358 million+12.6%
Operating profit¥243 million+32.8%
Ordinary income¥320 million+47.4%
Net income¥279 million+100.4%
Selling, general and administrative expenses¥1,678 million
Full-year earnings forecast
Net Sales
¥14,731 million
Operating profit
¥1,093 million
Ordinary income
¥1,199 million
Net income for the current fiscal year
¥824 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was slightly below plan, while profits were in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit in the Embedded Software Business¥319 million
  • Gross profit in the Sensing Solutions Business¥-21 million
  • Development investment (R&D expenses)¥-82 million
  • Selling, general and administrative expenses (excluding R&D expenses)¥-154 million
  • Operating profit in the previous fiscal year¥183 million
  • Operating profit for the period¥243 million
New initiatives
  • Signed a memorandum of understanding with サイバートラスト for the joint development of a Japan-origin SDx development platform and engineering services for the era of physical AI
Key KPIsA metric the company considers important as a management benchmark.
  • Development investment-to-sales ratio7.7 %
    Year on year against the same period last yearUp from 6.3%
  • Automotive sector sales mix48.3 %
    Year on year against the same period last yearDown from 48.4%
  • Consumer equipment sales mix23.3 %
    Year on year against the same period last yearUp from 21.1%
  • Industrial control / factory automation / industrial equipment sales mix13.6 %
    Year on year against the same period last yearUp from 12.3%
  • Healthcare / welfare-related sales mix6 %
    Year on year against the same period last yearDown from 7.7%
Segment results
Embedded Software Business
Net Sales
¥6,159 million+14.5%
Operating profit
¥278 million+43.2%
Embedded software products
Net Sales
¥1,242 million+73.7%
Engineering Services
Net Sales
¥4,916 million+5.4%
Sensing Solutions Business
Net Sales
¥198 million-25.4%
Operating profit
¥-34 million
Medium-term management plan targets
Financial targets set through 2030 (specific target figures not disclosed)
Number of employees
Number of Employees585 people
StandardAs of the end of June 2026 (excluding officers and secondees)
Annual Dividend
Annual dividend per share¥5.5
Interim Dividend¥1.5
Payout ratio
2026 plan13.1 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales¥6,358 million (YoY +12.6%)
Operating profit¥243 million (YoY +32.8%)
Ordinary income¥320 million (YoY +47.4%)
Net income¥279 million (YoY +100.4%)
Selling, general and administrative expenses¥1,678 million
Full-year earnings forecastNet Sales ¥14,731 million / Operating profit ¥1,093 million / Ordinary income ¥1,199 million / Net income for the current fiscal year ¥824 million
Self-assessment against the planRevenue was slightly below plan, while profits were in line with plan
Segment resultsEmbedded Software Business Net Sales ¥6,159 million (YoY +14.5%) / Operating profit ¥278 million (YoY +43.2%) / Embedded software products Net Sales ¥1,242 million (YoY +73.7%) / Engineering Services Net Sales ¥4,916 million (YoY +5.4%) / Sensing Solutions Business Net Sales ¥198 million (YoY -25.4%) / Operating profit ¥-34 million
Breakdown of Factors Affecting the ChangeFactors Gross profit in the Embedded Software Business / Amount ¥319 million, Factors Gross profit in the Sensing Solutions Business / Amount ¥-21 million, Factors Development investment (R&D expenses) / Amount ¥-82 million, Factors Selling, general and administrative expenses (excluding R&D expenses) / Amount ¥-154 million, Factors Operating profit in the previous fiscal year / Amount ¥183 million, Factors Operating profit for the period / Amount ¥243 million
Key KPIsIndicator name Development investment-to-sales ratio / Value 7.7 % / Year on year against the same period last year Up from 6.3%, Indicator name Automotive sector sales mix / Value 48.3 % / Year on year against the same period last year Down from 48.4%, Indicator name Consumer equipment sales mix / Value 23.3 % / Year on year against the same period last year Up from 21.1%, Indicator name Industrial control / factory automation / industrial equipment sales mix / Value 13.6 % / Year on year against the same period last year Up from 12.3%, Indicator name Healthcare / welfare-related sales mix / Value 6 % / Year on year against the same period last year Down from 7.7%
Number of employeesNumber of Employees 585 people / Standard As of the end of June 2026 (excluding officers and secondees) / Changes during the period and hiring plan Not disclosed
Medium-term management plan targetsFinancial targets set through 2030 (specific target figures not disclosed)
Annual DividendAnnual dividend per share ¥5.5 / Interim Dividend ¥1.5 / Year-end dividend Not disclosed
Payout ratioValue 13.1 % / Subject 2026 plan
New initiativesSigned a memorandum of understanding with サイバートラスト for the joint development of a Japan-origin SDx development platform and engineering services for the era of physical AI
Items this document does not state (14)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket 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.

This was because the Embedded Software Business posted double-digit revenue growth, driven particularly by higher sales of embedded software products. In addition, grant income from NEDO was recorded as non-operating income. Versus plan, profits reached or exceeded plan, mainly due to growth in embedded software products.

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Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 | eSOL Co.,Ltd. (4420) timely disclosure | Komori