Komori
Financial results presentation4828Business Engineering CorporationInformation and Communications, Services and Others

Earnings Presentation Materials for the Fiscal Year Ending March 2026

In the fiscal year ending March 2026, revenue, profit at every stage and orders received all reached record highs, with substantial revenue growth driving profit growth. For the fiscal year ending March 2027, revenue and operating profit are expected to increase, while net income is expected to decline due to the reversal of tax burden reductions.

Worth reading
88Important
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
17.6
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFourth quarter and full year of the fiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥24,442 million+17.6%
Operating profit¥6,411 million+37.1%
Ordinary income¥6,435 million+37.5%
Net income¥4,890 million+46.8%
Gross Profit Margin45.6%, improved from 43.8% in the same period of the previous year
Operating profit margin26.2%, improved from 22.5% in the same period of the previous year
Selling, general and administrative expensesIncrease of ¥329 million (due to higher salary levels, stronger proposal activities and other factors). SG&A expenses as a percentage of revenue: not disclosed
Results for the three months of the current quarter
Net Sales
¥5,862 million
Operating profit
¥1,274 million
Ordinary income
¥1,276 million
Net income
¥1,191 million
Orders received
¥6,748 million
Full-year earnings forecast
Fiscal year ending March 2026
Net Sales
¥24,300 million
Operating profit
¥6,400 million
Ordinary income
¥6,400 million
Net income
¥4,800 million
Fiscal year ending March 2027
Net Sales
¥26,800 million
Operating profit
¥6,900 million
Ordinary income
¥6,900 million
Net income
¥4,600 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。
Fiscal year ending March 2026
Net Sales100.6%
Operating profit100.2%
Ordinary income100.6%
Net income101.9%
Orders received100.3%
Segment revenue
Solutions101.2%
Products100.1%
System support90.3%
mcframe license101.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both the Solutions Business and Product Business achieved their full-year targets
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Cumulative fourth-quarter operating profit
Revenue Growth+¥1,604 million
Improvement in Gross Profit Margin+¥460 million
Increase in SG&A expenses-¥329 million
Fourth-quarter operating profit
Revenue Growth+¥235 million
Gross profit margin improvement and higher profitability in the Solutions Business+¥140 million
Increase in SG&A expenses-¥115 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Strategic digital investment appetite among manufacturers is expected to remain strong. Numerical assumptions for foreign exchange rates, raw material prices, interest rates and other factors: not disclosed
New initiatives
  • Consolidation of all 5 previously non-consolidated overseas subsidiaries from FY26
  • Preparation to establish new overseas bases
  • Expansion of SaaS-based and hybrid offerings for mcframe X
  • Improving the efficiency of mcframe development, test design and SI implementation through the use of AI
  • AI-OCR API scheduled for release in October 2026
  • Design-change impact analysis, work-procedure generation, and forecasting and simulation using AI agents
Key KPIsA metric the company considers important as a management benchmark.
  • ROE33.2 %
    Year on year against the same period last year+5.8pt
  • Annual dividend¥41.6 per share
    Year on year against the same period last year+¥21.6
  • Dividend payout ratio50.9 %
    Year on year against the same period last year+14.9pt
  • Recurring revenue from the Solutions Business¥4,572 million
  • mcframe license revenue¥6,184 million
    Year on year against the same period last year+20.8%
  • mcframe recurring revenue¥3,245 million
  • Knowledge database answer rate85 %
    Year on year against the same period last yearImproved from 68% in May 2025
  • Average number of searches3,900 searches per business day
    Year on year against the same period last yearIncreased from 1,500 searches in May 2025
Segment results
Solutions Business
Net Sales
¥15,582 million+18.5%
Operating profit
¥4,751 million+30.7%
Product Business
Net Sales
¥8,408 million+18.7%
Operating profit
¥3,205 million+21.6%
System support
Net Sales
¥451 million-16.7%
Operating profit
¥508 million+1.8%
Medium-term management plan targets
BE 2030
Target fiscal yearFiscal 2030 (fiscal year ending March 2031)
Net Sales¥33 billion
Operating profit¥10 billion
ROEAt least 20% (25.0% on another page)
Comparison with actual resultsFY25 actual results: revenue of ¥24.4 billion, operating profit of ¥6.41 billion and ROE of 33.2%
Financial targets
ROE
FY2025 actual results33.2%
FY30 target25.0%
Equity ratio
FY2025 actual results74.7%
FY24 actual72.5%
Orders received and order backlog
Orders received
¥24,585 million+13.3%
Number of stores and locations
Operations in 5 overseas countries and a workforce of 302, including employees of overseas partner companies. The 5 overseas subsidiaries outside the United States are scheduled to be consolidated from the fiscal year ending March 2026. Number of stores and openings/closures during the period: not disclosed
Number of employees
302, including employees of overseas partner companies, as of the end of March 2026. Total number of employees, changes during the period and hiring plan: not disclosed
Annual Dividend
FY25
Annual¥41.6 per share
Interim¥15.6 per share
End of period¥26.0 per share
FY26 forecast
Annual¥42.0 per share
Interim¥21.0 per share
End of period¥21.0 per share
Payout ratio
FY25 actual: 50.9%; FY26 forecast: 54.5%. Policy of maintaining a payout ratio above 50% from FY25 and a progressive dividend policy
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFourth quarter and full year of the fiscal year ending March 2026
Net Sales¥24,442 million (YoY +17.6%)
Operating profit¥6,411 million (YoY +37.1%)
Ordinary income¥6,435 million (YoY +37.5%)
Net income¥4,890 million (YoY +46.8%)
Gross Profit Margin45.6%, improved from 43.8% in the same period of the previous year
Operating profit margin26.2%, improved from 22.5% in the same period of the previous year
Selling, general and administrative expensesIncrease of ¥329 million (due to higher salary levels, stronger proposal activities and other factors). SG&A expenses as a percentage of revenue: not disclosed
Results for the three months of the current quarterNet Sales ¥5,862 million / Operating profit ¥1,274 million / Ordinary income ¥1,276 million / Net income ¥1,191 million / Orders received ¥6,748 million
Full-year earnings forecastFiscal year ending March 2026 Net Sales ¥24,300 million / Operating profit ¥6,400 million / Ordinary income ¥6,400 million / Net income ¥4,800 million / Fiscal year ending March 2027 Net Sales ¥26,800 million / Operating profit ¥6,900 million / Ordinary income ¥6,900 million / Net income ¥4,600 million
Progress against full-year forecastFiscal year ending March 2026 Net Sales 100.6% / Operating profit 100.2% / Ordinary income 100.6% / Net income 101.9% / Orders received 100.3% / Segment revenue Solutions 101.2% / Products 100.1% / System support 90.3% / mcframe license 101.4%
Self-assessment against the planBoth the Solutions Business and Product Business achieved their full-year targets
Segment resultsSolutions Business Net Sales ¥15,582 million (YoY +18.5%) / Operating profit ¥4,751 million (YoY +30.7%) / Product Business Net Sales ¥8,408 million (YoY +18.7%) / Operating profit ¥3,205 million (YoY +21.6%) / System support Net Sales ¥451 million (YoY -16.7%) / Operating profit ¥508 million (YoY +1.8%)
Breakdown of Factors Affecting the ChangeCumulative fourth-quarter operating profit Revenue Growth +¥1,604 million / Improvement in Gross Profit Margin +¥460 million / Increase in SG&A expenses -¥329 million / Fourth-quarter operating profit Revenue Growth +¥235 million / Gross profit margin improvement and higher profitability in the Solutions Business +¥140 million / Increase in SG&A expenses -¥115 million
Key KPIsIndicator name ROE / Value 33.2 % / Year on year against the same period last year +5.8pt, Indicator name Annual dividend / Value ¥41.6 per share / Year on year against the same period last year +¥21.6, Indicator name Dividend payout ratio / Value 50.9 % / Year on year against the same period last year +14.9pt, Indicator name Recurring revenue from the Solutions Business / Value ¥4,572 million / Year on year against the same period last year Not disclosed, Indicator name mcframe license revenue / Value ¥6,184 million / Year on year against the same period last year +20.8%, Indicator name mcframe recurring revenue / Value ¥3,245 million / Year on year against the same period last year Not disclosed, Indicator name Knowledge database answer rate / Value 85 % / Year on year against the same period last year Improved from 68% in May 2025, Indicator name Average number of searches / Value 3,900 searches per business day / Year on year against the same period last year Increased from 1,500 searches in May 2025
Number of stores and locationsOperations in 5 overseas countries and a workforce of 302, including employees of overseas partner companies. The 5 overseas subsidiaries outside the United States are scheduled to be consolidated from the fiscal year ending March 2026. Number of stores and openings/closures during the period: not disclosed
Number of employees302, including employees of overseas partner companies, as of the end of March 2026. Total number of employees, changes during the period and hiring plan: not disclosed
Assumptions Underlying the Business OutlookStrategic digital investment appetite among manufacturers is expected to remain strong. Numerical assumptions for foreign exchange rates, raw material prices, interest rates and other factors: not disclosed
Medium-term management plan targetsBE 2030 Target fiscal year Fiscal 2030 (fiscal year ending March 2031) / Net Sales ¥33 billion / Operating profit ¥10 billion / ROE At least 20% (25.0% on another page) / Comparison with actual results FY25 actual results: revenue of ¥24.4 billion, operating profit of ¥6.41 billion and ROE of 33.2%
Financial targetsROE FY2025 actual results 33.2% / FY30 target 25.0% / Equity ratio FY2025 actual results 74.7% / FY24 actual 72.5%
Annual DividendFY25 Annual ¥41.6 per share / Interim ¥15.6 per share / End of period ¥26.0 per share / FY26 forecast Annual ¥42.0 per share / Interim ¥21.0 per share / End of period ¥21.0 per share
Payout ratioFY25 actual: 50.9%; FY26 forecast: 54.5%. Policy of maintaining a payout ratio above 50% from FY25 and a progressive dividend policy
Orders received and order backlogOrders received ¥24,585 million (YoY +13.3%) / Order backlog Not disclosed
New initiativesConsolidation of all 5 previously non-consolidated overseas subsidiaries from FY26, Preparation to establish new overseas bases, Expansion of SaaS-based and hybrid offerings for mcframe X, Improving the efficiency of mcframe development, test design and SI implementation through the use of AI, AI-OCR API scheduled for release in October 2026, Design-change impact analysis, work-procedure generation, and forecasting and simulation using AI agents
Items this document does not state (6)
Unit price and quantity metricsRisk 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.

Strong demand in the Solutions Business and Product Business, substantial revenue growth, an improved gross profit margin, higher profitability in the Solutions Business and growth in license sales are cited as the reasons for the increases in revenue and profit. Net income is expected to decline in the fiscal year ending March 2027 due to the reversal of one-off tax burden reductions and other factors.

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.
Earnings Presentation Materials for the Fiscal Year Ending March 2026 | Business Engineering Corporation (4828) timely disclosure | Komori