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Presentation materials for financial results4736Nippon RAD Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the 55th Fiscal Year (Fiscal Year Ending March 2026)

In the fiscal year ending March 2026, revenue declined due to the pullback from the large projects that expanded in the previous fiscal year and the completion of projects in some businesses. Operating profit also fell significantly due to higher wages and outsourcing costs and upfront investment in the AI and video businesses. Meanwhile, the Company advanced DX initiatives for manufacturers and collaboration across the Group, and revenue exceeded the medium-term plan.

Worth reading
70In 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
-46.6
Year-on-year change in operating profit (%)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, full-year results10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,131 million-5.1%
Operating profit¥169 million-46.6%
Ordinary income¥244 million-37.3%
Net income¥164 million-60.5%
Results for the three months of the current quarter
Net Sales
¥1,114 million
Operating profit
¥63 million
Ordinary income
¥69 million
Net income for the current fiscal year
¥69 million
Full-year earnings forecast
Fiscal year ending March 2027 (consolidated)
Net Sales
¥4,340 million
Operating profit
¥175 million
Ordinary income
¥253 million
Net income for the current fiscal year
¥165 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 Sales103.1 %
Operating profit59.3 %
Ordinary income73.3 %
Net income for the current fiscal year52.3 %
NotesCoverage ratio against the FY2027 medium-term plan target
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue met the target for the second consecutive fiscal year, while profit was slightly below target
New initiatives
  • Launch of AI-driven development, employee training, personnel reallocation and development platformization
  • Reborn project to streamline the development of Kinterp
  • Group joining of 株式会社One’s House and launch of collaboration
  • Launch of a new Video Solutions Business division, doubling of personnel and investment in the development of in-house IP video services
  • Launch of domestic service sales for Acterys
  • Rollout of Fabriko, a kintone-based facilities maintenance management solution
Key KPIsA metric the company considers important as a management benchmark.
  • AI-driven development as a percentage of total revenue30 %
  • Target percentage of revenue from AI-driven development for the next fiscal year50 % or higher
  • Target CAGR for revenue from the DX business for manufacturers20 %
  • Headcount in the Video Solutions Division6→12
    Year on year against the same period last yearIncreased
Segment results
  • Enterprise Solutions Business
    Net Sales2,387
    Profit375
    Revenue_yoy_pct-1.1
    Profit_yoy_pct-1.1
  • IoT Integration Business
    Net Sales1,744
    Profit245
    Revenue_yoy_pct-10.3
    Profit_yoy_pct-44.4
Medium-term management plan targets
Fiscal year ending March 2026
Net Sales¥3,950 million operating margin in %
Operating profit¥200 million operating margin in %
Operating profit margin¥5.1 million operating margin in %
Fiscal year ending March 2027
Net Sales¥4,210 million
Operating profit¥295 million
Comparison with actual results for the fiscal year ended March 2026
Net Sales¥4,032 million operating margin in %
Operating profit¥178 million operating margin in %
Operating profit margin¥4.4 million operating margin in %
Financial targets
Operating profit margin
FY2026 target5.1 %
Actual results for the fiscal year ending March 20264.4 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
100 approximately million yen
DetailsA plan-based reduction in operating profit resulting from upfront personnel investment required for AI-driven development and the cost of incorporating video acquisition technology into the existing Video Solutions Business
Number of employees
Number of Employees328 People
Record date1 April 2026
Annual Dividend
Annual¥10 per share
Interim¥5 per share
End of period¥5 per share
Payout ratio
32
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, full-year results
Net Sales¥4,131 million (YoY -5.1%)
Operating profit¥169 million (YoY -46.6%)
Ordinary income¥244 million (YoY -37.3%)
Net income¥164 million (YoY -60.5%)
Results for the three months of the current quarterNet Sales ¥1,114 million / Operating profit ¥63 million / Ordinary income ¥69 million / Net income for the current fiscal year ¥69 million
Full-year earnings forecastSubject Fiscal year ending March 2027 (consolidated) / Net Sales ¥4,340 million / Operating profit ¥175 million / Ordinary income ¥253 million / Net income for the current fiscal year ¥165 million
Progress against full-year forecastNet Sales 103.1 % / Operating profit 59.3 % / Ordinary income 73.3 % / Net income for the current fiscal year 52.3 % / Notes Coverage ratio against the FY2027 medium-term plan target
Self-assessment against the planRevenue met the target for the second consecutive fiscal year, while profit was slightly below target
Segment resultsSegment Enterprise Solutions Business / Net Sales ¥2,387 million / Profit ¥375 million / Revenue_yoy_pct ¥-1.1 million / Profit_yoy_pct ¥-1.1 million, Segment IoT Integration Business / Net Sales ¥1,744 million / Profit ¥245 million / Revenue_yoy_pct ¥-10.3 million / Profit_yoy_pct ¥-44.4 million
Key KPIsIndicator AI-driven development as a percentage of total revenue / Value 30 % / Year on year against the same period last year Not disclosed, Indicator Target percentage of revenue from AI-driven development for the next fiscal year / Value 50 % or higher / Year on year against the same period last year Not disclosed, Indicator Target CAGR for revenue from the DX business for manufacturers / Value 20 % / Year on year against the same period last year Not disclosed, Indicator Headcount in the Video Solutions Division / Value 6→12 / Year on year against the same period last year Increased
Number of employeesNumber of Employees 328 People / Record date 1 April 2026 / Change during the period Not disclosed / Hiring plan Not disclosed
Risk amount incorporated into the outlookAmount 100 approximately million yen / Details A plan-based reduction in operating profit resulting from upfront personnel investment required for AI-driven development and the cost of incorporating video acquisition technology into the existing Video Solutions Business
Medium-term management plan targetsFiscal year ending March 2026 Net Sales ¥3,950 million (operating margin in %) / Operating profit ¥200 million (operating margin in %) / Operating profit margin ¥5.1 million (operating margin in %) / Fiscal year ending March 2027 Net Sales ¥4,210 million / Operating profit ¥295 million / Comparison with actual results for the fiscal year ended March 2026 Net Sales ¥4,032 million (operating margin in %) / Operating profit ¥178 million (operating margin in %) / Operating profit margin ¥4.4 million (operating margin in %)
Financial targetsOperating profit margin FY2026 target 5.1 % / Actual results for the fiscal year ending March 2026 4.4 %
Annual DividendAnnual ¥10 per share / Interim ¥5 per share / End of period ¥5 per share
Payout ratio32
New initiativesLaunch of AI-driven development, employee training, personnel reallocation and development platformization, Reborn project to streamline the development of Kinterp, Group joining of 株式会社One’s House and launch of collaboration, Launch of a new Video Solutions Business division, doubling of personnel and investment in the development of in-house IP video services, Launch of domestic service sales for Acterys, Rollout of Fabriko, a kintone-based facilities maintenance management solution
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookAcquisition 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.

The completion of large development projects, video projects and medical projects; higher costs including wages and outsourcing expenses; upfront investment in the launch of new AI and video businesses; and the absence of the previous fiscal year's factor reducing income taxes and other taxes due to an increase in deferred tax assets.

How to read this page

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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.
Earnings Presentation Materials for the 55th Fiscal Year (Fiscal Year Ending March 2026) | Nippon RAD Inc. (4736) timely disclosure | Komori