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Financial results presentation7374Interworks Confidence Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the Fiscal Year Ending March 2026

Revenue increased due to contributions from subsidiaries added through M&A and exceeded the plan even after its downward revision. Operating profit, however, declined due to weakness in existing businesses and M&A-related expenses. For FY2027, the company expects higher revenue and operating profit.

Worth reading
73In 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
18.8
Year-on-year change in net sales (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥9,970 million+18.8%
Operating profit¥1,284 million-1.4%
Ordinary income¥1,269 million-3.2%
Net income¥800 million-23.0%
Gross Profit Margin45.8 %
Operating profit margin12.9 %
Selling, general and administrative expenses¥3,282 million
Results for the three months of the current quarterQuarterly revenue and operating profit trends are presented. In the fourth quarter of FY2026, revenue was ¥2,710 million and operating profit was ¥362 million.
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥11,500 million
Gross profit
¥5,159 million
Operating profit
¥1,460 million
Annual Dividend
¥85
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。
Consolidated revenue for the fiscal year ended March 2026101.7
Consolidated operating profit for the fiscal year ended March 2026101.2
FY2026 consolidated ordinary profit103.2
FY2026 consolidated net income103.9
HR Solutions Business_staffing and contract services revenue102
HR Solutions Business_recruitment services revenue102.2
Media & Solutions Business revenue100.9
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Exceeded the revised forecast (outperformed)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue increase from the consolidation of Let's i and the BRAISE Group¥364 million
  • Personnel expenses¥-174 million
  • Rent¥-31 million
  • Depreciation¥14 million
  • Increased investment in advertising¥-78 million
  • Increase in amortization of goodwill¥-49 million
  • Other¥-62 million
New initiatives
  • Corporate demerger and organizational restructuring to transition to a group management structure
  • Improved productivity through the use of AI
  • Codifying post-M&A PMI knowledge and strengthening cross-selling
  • Investing in human resources through recruitment and training, and developing next-generation executives
Key KPIsA metric the company considers important as a management benchmark.
  • Number of active personnel1,072 People
    Year on year against the same period last year+227.0%
  • Placements per consultant7.5 % increase
    Year on year against the same period last year+7.5%
  • Number of job listings19,463 Engagements
  • Number of customers891 companies
  • Equity ratio80.5 %
  • ROE13.3 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The presentation includes the number of active personnel, number of working days, utilization rate, number of consultants, number of placements, placements per consultant, number of job postings, number of corporate customers and average revenue per customer.
Segment results
  • HR Solutions Business (staffing and contract services)
    Net Sales¥6,937 million (YoY +29.9%)
    Segment profit¥1,203 million (YoY -1.0%)
  • HR Solutions Business (recruitment services)
    Net Sales¥1,482 million (YoY -0.4%)
    Segment profit¥500 million (YoY -5.8%)
  • Media & Solutions Business
    Net Sales¥1,563 million (YoY -0.0%)
    Segment profit¥542 million (YoY +1.3%)
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Net Sales
¥20,000 million
Operating profit
¥3,000 million
Financial targets
ROE
Actual results13.3 %
Equity ratio
Actual results80.5 %
DOE target>10%
Payout Ratio Target>30%
Number of stores and locations
Regional offices are located in Nagoya, Osaka and Fukuoka. The number of openings and closures during the period was Not disclosed.
Number of employees
1,275 People
As ofEnd of March 2026
Annual Dividend
Fiscal year ending March 2026
Annual¥75
Interim¥35
End of period¥40
Forecast for the fiscal year ending March 2027
Annual¥85
Interim¥40
End of period¥45
Payout ratio
Fiscal year ending March 202658.4 %
Forecast for the fiscal year ending March 202756.8 %
Gross profit
¥4,567 million+8.7%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥9,970 million (YoY +18.8%)
Operating profit¥1,284 million (YoY -1.4%)
Ordinary income¥1,269 million (YoY -3.2%)
Net income¥800 million (YoY -23.0%)
Gross profit¥4,567 million (YoY +8.7%)
Gross Profit Margin45.8 %
Operating profit margin12.9 %
Selling, general and administrative expenses¥3,282 million
Results for the three months of the current quarterQuarterly revenue and operating profit trends are presented. In the fourth quarter of FY2026, revenue was ¥2,710 million and operating profit was ¥362 million.
Full-year earnings forecastSubject Fiscal year ending March 2027 / Net Sales ¥11,500 million / Gross profit ¥5,159 million / Operating profit ¥1,460 million / Annual Dividend ¥85
Progress against full-year forecastConsolidated revenue for the fiscal year ended March 2026 101.7 / Consolidated operating profit for the fiscal year ended March 2026 101.2 / FY2026 consolidated ordinary profit 103.2 / FY2026 consolidated net income 103.9 / HR Solutions Business_staffing and contract services revenue 102 / HR Solutions Business_recruitment services revenue 102.2 / Media & Solutions Business revenue 100.9
Self-assessment against the planExceeded the revised forecast (outperformed)
Segment resultsSegment HR Solutions Business (staffing and contract services) / Net Sales ¥6,937 million (YoY +29.9%) / Segment profit ¥1,203 million (YoY -1.0%), Segment HR Solutions Business (recruitment services) / Net Sales ¥1,482 million (YoY -0.4%) / Segment profit ¥500 million (YoY -5.8%), Segment Media & Solutions Business / Net Sales ¥1,563 million (YoY -0.0%) / Segment profit ¥542 million (YoY +1.3%)
Breakdown of Factors Affecting the ChangeFactors Revenue increase from the consolidation of Let's i and the BRAISE Group / Amount ¥364 million, Factors Personnel expenses / Amount ¥-174 million, Factors Rent / Amount ¥-31 million, Factors Depreciation / Amount ¥14 million, Factors Increased investment in advertising / Amount ¥-78 million, Factors Increase in amortization of goodwill / Amount ¥-49 million, Factors Other / Amount ¥-62 million
Key KPIsIndicator name Number of active personnel / Value 1,072 People / Year on year against the same period last year 227 People, Indicator name Placements per consultant / Value 7.5 % increase / Year on year against the same period last year 7.5 % increase, Indicator name Number of job listings / Value 19,463 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of customers / Value 891 companies / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 80.5 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 13.3 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsThe presentation includes the number of active personnel, number of working days, utilization rate, number of consultants, number of placements, placements per consultant, number of job postings, number of corporate customers and average revenue per customer.
Number of stores and locationsRegional offices are located in Nagoya, Osaka and Fukuoka. The number of openings and closures during the period was Not disclosed.
Number of employees1,275 People
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2030 / Net Sales ¥20,000 million / Operating profit ¥3,000 million
Financial targetsROE Actual results 13.3 % / Target Not disclosed / Equity ratio Actual results 80.5 % / Target Not disclosed / DOE target >10% / Payout Ratio Target >30%
Annual DividendFiscal year ending March 2026 Annual ¥75 / Interim ¥35 / End of period ¥40 / Forecast for the fiscal year ending March 2027 Annual ¥85 / Interim ¥40 / End of period ¥45
Payout ratioFiscal year ending March 2026 58.4 % / Forecast for the fiscal year ending March 2027 56.8 %
New initiativesCorporate demerger and organizational restructuring to transition to a group management structure, Improved productivity through the use of AI, Codifying post-M&A PMI knowledge and strengthening cross-selling, Investing in human resources through recruitment and training, and developing next-generation executives
Items this document does not state (7)
Assumptions Underlying the Business OutlookRisk amount incorporated into the 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.

Newly consolidated subsidiaries acquired through M&A, including Let's i, BRAISE and Gee's Corporation, contributed to revenue and profit, while the core existing businesses remained weak and SG&A expenses, including amortization of goodwill and personnel expenses, increased.

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.
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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 Fiscal Year Ending March 2026 | Interworks Confidence Inc. (7374) timely disclosure | Komori