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Revision of earnings forecasts7352TWOSTONE&Sons Inc.Information and Communications, Services and Others

Notice Regarding Revisions to Consolidated Earnings Forecast

The consolidated earnings forecast for the fiscal year ending August 2026 was revised downward, with revenue, operating profit, ordinary profit and net income attributable to owners of the parent all reduced. In particular, profit is now expected to decline by more than 30% from the previous forecast.

Worth reading
77Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-2377
¥ million
Wording
Conditional
How definitive the wording is.

Revised forecast

Fiscal year ending August 2026 · Full yearPrevious forecast published 15 October 2025
Net Sales24,182→21,805million
-9.8%
Operating profit1,324→810million
-38.8%
Ordinary income1,321→847million
-35.9%
Profit attributable to owners of the parent660→428million
-35.1%
Net income per share15.02→9.71yen
-35.4%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

In the Midworks business, the specialization of sales functions and refinement of project management fell behind schedule, while challenges remained in proposal capabilities and the accuracy of matching projects with engineers. As a result, demand could not be converted into orders sufficiently, and the number of active engineers fell below expectations. In addition, lower sales of high-margin products, personnel investments and upfront investments related to AI consulting affected operating profit.

Previous-period resultsRevenue ¥18,077 million, operating profit ¥819 million, ordinary profit ¥807 million, net income attributable to owners of the parent ¥494 million, earnings per share ¥11.38
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥24,182 million → ¥21,805 million(-9.8%)
Operating profit¥1,324 million → ¥810 million(-38.8%)
Ordinary income¥1,321 million → ¥847 million(-35.9%)
Profit attributable to owners of the parent¥660 million → ¥428 million(-35.1%)
Net income per share15.02 yen → 9.71 yen
Fiscal Period CoveredFiscal year ending August 2026
Period CoveredFull year
Publication date of previous forecast15 October 2025
Previous-period resultsRevenue ¥18,077 million, operating profit ¥819 million, ordinary profit ¥807 million, net income attributable to owners of the parent ¥494 million, earnings per share ¥11.38
Reason for the revisionIn the Midworks business, the specialization of sales functions and refinement of project management fell behind schedule, while challenges remained in proposal capabilities and the accuracy of matching projects with engineers. As a result, demand could not be converted into orders sufficiently, and the number of active engineers fell below expectations. In addition, lower sales of high-margin products, personnel investments and upfront investments related to AI consulting affected operating profit.
Consolidated / non-consolidatedConsolidated
Items this document does not state (2)
Details and amount of extraordinary lossDividend forecast revision

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 mainly because the strengthening of the sales organization in the Midworks business was delayed, challenges remained in proposal capabilities and the accuracy of matching projects with engineers, and demand could not be converted into orders sufficiently, resulting in the number of active engineers falling below expectations. In addition, lower sales of high-margin products, personnel investments and upfront investments related to AI consulting put downward pressure on operating profit.

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.
Notice Regarding Revisions to Consolidated Earnings Forecast | TWOSTONE&Sons Inc. (7352) timely disclosure | Komori