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Earnings presentation6701NEC CorporationElectrical Equipment and Precision Instruments

Summary of Full-Year Results for Fiscal 2025 (Fiscal Year Ending March 2026)

In FY2025, revenue and Non-GAAP profit exceeded the previous year, and profit margins improved. In FY2026, revenue is expected to decline, while Non-GAAP operating profit, profit for the year and annual dividends are expected to increase. The Telecom Services business will be reorganized across the segments.

Worth reading
54Recurring
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
859
¥100 million (year-on-year increase in Non-GAAP operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFY2025 (fiscal year ending March 2026), full year8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥35,827 hundreds of millions+4.7%
Operating profit¥3,972 100 million +27.6%Non-GAAP operating profit
Net income¥2,798 100 million +24.0%Non-GAAP profit for the year
Operating profit margin11.1 % Non-GAAP operating margin
Results for the three months of the current quarter
Revenue
¥11,604 hundreds of millions+5.3%
Non-GAAP operating profit
¥1,874 hundreds of millions+25.8%
Non-GAAP profit for the year
¥1,368 hundreds of millions+16.6%
Full-year earnings forecast
Revenue
¥35,000 hundreds of millions
Non-GAAP operating profit
¥4,200 hundreds of millions
Non-GAAP profit for the year
¥2,850 hundreds of millions
Free cash flow
¥3,000 hundreds of millions
Dividend per share
¥40
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • IT Services¥679 hundreds of millions
  • Social Infrastructure¥198 hundreds of millions
  • DX investment and other factors¥-18 hundreds of millions
  • Non-GAAP adjustments, restructuring costs and other factors¥-104 hundreds of millions
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Revenue allowance¥1,000 hundreds of millions
  • Non-GAAP operating profit allowance¥300 hundreds of millions
New initiatives
  • Reorganized the telecommunications services business across the respective segments
  • Expand AI use cases and improve productivity through BluStellar
  • Plan to acquire CSG during the current fiscal year (not included in the earnings forecast)
Key KPIsA metric the company considers important as a management benchmark.
  • CCC at fiscal year-end (days)67 days
  • Average CCC during the fiscal year (days)59 days
  • BluStellar revenue ratio32 %
    Year on year against the same period last year+7.0%
  • Annual orders for domestic IT services-3 %
  • ABeam annual orders12 %
Segment results
IT Services
Revenue
¥25,089 hundreds of millions+2.0%
Adjusted operating profit
¥3,367 hundreds of millions
yoy_change849
Social Infrastructure
Revenue
¥9,353 hundreds of millions+12.4%
Adjusted operating profit
¥743 hundreds of millions
yoy_change139
Other
Revenue
¥1,385 hundreds of millions+5.3%
Adjusted operating profit
¥-41 hundreds of millions
yoy_change-12
Adjustments
Adjusted operating profit
¥-201 hundreds of millions
yoy_change21
Financial targets
ROIC
FY2025 actual results9.1 %
FY26 forecast9.2 %
Equity ratio attributable to owners of the parent
At March 2026 year-end49.2 %
Debt-to-equity ratio
At March 2026 year-end0.22 times
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • ¥1,000 hundreds of millions
    DetailsRevenue allowance reflecting component-related risks and uncertainty in the macroeconomic environment
  • ¥300 hundreds of millions
    DetailsNon-GAAP operating profit allowance reflecting component-related risks and uncertainty in the macroeconomic environment
Annual Dividend
Annual¥38
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY2025 (fiscal year ending March 2026), full year
Net Sales¥35,827 hundreds of millions (YoY +4.7%)
Operating profit¥3,972 100 million (Non-GAAP operating profit) (YoY +27.6%)
Net income¥2,798 100 million (Non-GAAP profit for the year) (YoY +24.0%)
Operating profit margin11.1 % (Non-GAAP operating margin)
Results for the three months of the current quarterRevenue ¥11,604 hundreds of millions (YoY +5.3%) / Non-GAAP operating profit ¥1,874 hundreds of millions (YoY +25.8%) / Non-GAAP profit for the year ¥1,368 hundreds of millions (YoY +16.6%)
Full-year earnings forecastRevenue ¥35,000 hundreds of millions / Non-GAAP operating profit ¥4,200 hundreds of millions / Non-GAAP profit for the year ¥2,850 hundreds of millions / Free cash flow ¥3,000 hundreds of millions / Dividend per share ¥40
Segment resultsIT Services Revenue ¥25,089 hundreds of millions (YoY +2.0%) / Adjusted operating profit ¥3,367 hundreds of millions / Social Infrastructure Revenue ¥9,353 hundreds of millions (YoY +12.4%) / Adjusted operating profit ¥743 hundreds of millions / Other Revenue ¥1,385 hundreds of millions (YoY +5.3%) / Adjusted operating profit ¥-41 hundreds of millions / Adjustments Adjusted operating profit ¥-201 hundreds of millions
Breakdown of Factors Affecting the ChangeFactors IT Services / Amount ¥679 hundreds of millions, Factors Social Infrastructure / Amount ¥198 hundreds of millions, Factors DX investment and other factors / Amount ¥-18 hundreds of millions, Factors Non-GAAP adjustments, restructuring costs and other factors / Amount ¥-104 hundreds of millions
Key KPIsIndicator name CCC at fiscal year-end (days) / Value 67 days, Indicator name Average CCC during the fiscal year (days) / Value 59 days, Indicator name BluStellar revenue ratio / Value 32 % / Year on year against the same period last year 7 %, Indicator name Annual orders for domestic IT services / Value -3 %, Indicator name ABeam annual orders / Value 12 %
Assumptions Underlying the Business OutlookItem Revenue allowance / Value ¥1,000 hundreds of millions, Item Non-GAAP operating profit allowance / Value ¥300 hundreds of millions
Risk amount incorporated into the outlookAmount ¥1,000 hundreds of millions / Details Revenue allowance reflecting component-related risks and uncertainty in the macroeconomic environment, Amount ¥300 hundreds of millions / Details Non-GAAP operating profit allowance reflecting component-related risks and uncertainty in the macroeconomic environment
Financial targetsROIC FY2025 actual results 9.1 % / FY26 forecast 9.2 % / Equity ratio attributable to owners of the parent At March 2026 year-end 49.2 % / Debt-to-equity ratio At March 2026 year-end 0.22 times
Annual DividendAnnual ¥38 / Interim Not disclosed / End of period Not disclosed
New initiativesReorganized the telecommunications services business across the respective segments, Expand AI use cases and improve productivity through BluStellar, Plan to acquire CSG during the current fiscal year (not included in the earnings forecast)
Items this document does not state (15)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsPayout ratioAcquisition 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.

FY2025 results benefited from demand for domestic IT services, the expansion of BluStellar, the effects of structural reforms, improved profitability at three European companies, and strong performance in aerospace and defense. For FY2026, the company expects the expansion of BluStellar, broader AI use cases, productivity improvements, the effects of structural reforms in Telecom Services, expansion of the defense business, and a return to profitability in the marine business, while factoring in component-related risks and uncertainty in the macroeconomic environment.

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Summary of Full-Year Results for Fiscal 2025 (Fiscal Year Ending March 2026) | NEC Corporation (6701) timely disclosure | Komori