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Earnings presentation8023DAIKO XTECH,LTD.Information and Communications, Services and Others

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, the shift toward software and recurring-revenue services progressed and orders increased. However, lower hardware sales and network construction revenue, one-off project losses, and higher investment expenses resulted in lower revenue and profits. For the fiscal year ending March 2027, the company expects higher revenue and profits and plans to pay an annual dividend of ¥38 per share.

Worth reading
59In 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
-506
¥ million (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥42,500 million-0.4%
Operating profit¥1,903 million-21.0%
Ordinary income¥1,991 million-20.2%
Net income¥1,442 million-14.3%
Gross Profit Margin25.1%
Operating profit margin4.5%
Selling, general and administrative expenses¥8,784 million
Results for the three months of the current quarterFourth quarter of the fiscal year ended March 2026: revenue ¥10,096 million, gross profit ¥2,303 million, operating profit ¥189 million
Full-year earnings forecast
Net Sales
¥43,500 million
Operating profit
¥2,600 million
Ordinary income
¥2,680 million
Net income
¥1,750 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decline due to lower revenue-¥46 million
  • Improving Profitability+¥612 million
  • Additional costs from project losses-¥433 million
  • Personnel expenses and improved employee compensation-¥176 million
  • Increase in headcount due to higher personnel expenses and expanded recruitment-¥218 million
  • Research and development-related expenses-¥103 million
  • Goodwill amortization-¥18 million
  • Training investment-¥16 million
  • Other expenses-¥244 million
New initiatives
  • Completed one M&A transaction involving the acquisition of shares in ブリットアプリケーション株式会社
  • Enhanced the functionality of proprietary solutions and introduced new solutions, including EBOM solutions
  • Strengthened the sales structure for the SaaS-based ERP solution D-Ever flex
  • Enhanced PM training and PMO capabilities
  • Introduction of a Shareholder Benefit Program
  • Introduced interim dividends from the fiscal year ending March 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥43,167 million
    Year on year against the same period last year+2.1%
  • Order backlog¥10,351 million
    Year on year against the same period last year+6.9%
  • Existing customer revenue ratio93.7 %
    Year on year against the same period last year+1.6pt
  • Recurring-revenue ratio40.2 %
    Year on year against the same period last year+5.8pt
  • ROE10.9 %
  • ROIC8.7 %
Segment results
Priority Solutions
Orders received¥8,872 million
Net Sales¥9,142 million
Gross profit¥3,051 million
Core business
Orders received¥34,295 million
Net Sales¥33,357 million
Gross profit¥7,637 million
Product solutions
Orders received¥2,905 million
Net Sales¥2,851 million
Gross profit¥858 million
Software solutions
Orders received¥22,516 million
Net Sales¥22,191 million
Gross profit¥6,435 million
Network Solutions
Orders received¥17,746 million
Net Sales¥17,457 million
Gross profit¥3,394 million
Medium-term management plan targets
Plan nameCANVAS TWO
Target fiscal yearFiscal year ending March 2028
Net Sales¥45,000 million
Gross profit¥12,500 million
Operating profit¥3,000 million
Profit attributable to owners of the parentNet income attributable to owners of the parent: ¥2,050 million
Operating profit margin6.7%
Financial targets
Target equity ratio50%
Target cash and deposits¥6 billion
DOE guideline3%
Actual results
Equity ratio49.1%
ROE10.9%
ROIC8.7%
Orders received and order backlog
Orders received¥43,167 million
Order backlog¥10,351 million
Number of employees
Number of Employees1,332 employees (consolidated, as of the end of March 2026)
Change during the periodThe consolidated number of engineers was 851, down by 12 from 863 in the previous fiscal year
Annual Dividend
Fiscal year ending March 2026¥36 per share (interim ¥18, year-end ¥18)
Forecast for the fiscal year ending March 2027¥38 per share (interim ¥19, year-end ¥19)
Acquisition of treasury shares
The company will consider opportunistic share buybacks as appropriate. The amount, number of shares and period of the acquisition program are not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥42,500 million (YoY -0.4%)
Operating profit¥1,903 million (YoY -21.0%)
Ordinary income¥1,991 million (YoY -20.2%)
Net income¥1,442 million (YoY -14.3%)
Gross Profit Margin25.1%
Operating profit margin4.5%
Selling, general and administrative expenses¥8,784 million
Results for the three months of the current quarterFourth quarter of the fiscal year ended March 2026: revenue ¥10,096 million, gross profit ¥2,303 million, operating profit ¥189 million
Full-year earnings forecastNet Sales ¥43,500 million / Operating profit ¥2,600 million / Ordinary income ¥2,680 million / Net income ¥1,750 million
Segment resultsPriority Solutions Orders received ¥8,872 million / Net Sales ¥9,142 million / Gross profit ¥3,051 million / Core business Orders received ¥34,295 million / Net Sales ¥33,357 million / Gross profit ¥7,637 million / Product solutions Orders received ¥2,905 million / Net Sales ¥2,851 million / Gross profit ¥858 million / Software solutions Orders received ¥22,516 million / Net Sales ¥22,191 million / Gross profit ¥6,435 million / Network Solutions Orders received ¥17,746 million / Net Sales ¥17,457 million / Gross profit ¥3,394 million
Breakdown of Factors Affecting the ChangeFactors Decline due to lower revenue / Amount -¥46 million, Factors Improving Profitability / Amount +¥612 million, Factors Additional costs from project losses / Amount -¥433 million, Factors Personnel expenses and improved employee compensation / Amount -¥176 million, Factors Increase in headcount due to higher personnel expenses and expanded recruitment / Amount -¥218 million, Factors Research and development-related expenses / Amount -¥103 million, Factors Goodwill amortization / Amount -¥18 million, Factors Training investment / Amount -¥16 million, Factors Other expenses / Amount -¥244 million
Key KPIsIndicator name Orders received / Value ¥43,167 million / Year on year against the same period last year +2.1%, Indicator name Order backlog / Value ¥10,351 million / Year on year against the same period last year +6.9%, Indicator name Existing customer revenue ratio / Value 93.7 % / Year on year against the same period last year +1.6pt, Indicator name Recurring-revenue ratio / Value 40.2 % / Year on year against the same period last year +5.8pt, Indicator name ROE / Value 10.9 % / Year on year against the same period last year Not disclosed, Indicator name ROIC / Value 8.7 % / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 1,332 employees (consolidated, as of the end of March 2026) / Change during the period The consolidated number of engineers was 851, down by 12 from 863 in the previous fiscal year / Hiring plan Not disclosed
Medium-term management plan targetsPlan name CANVAS TWO / Target fiscal year Fiscal year ending March 2028 / Net Sales ¥45,000 million / Gross profit ¥12,500 million / Operating profit ¥3,000 million / Profit attributable to owners of the parent Net income attributable to owners of the parent: ¥2,050 million / Operating profit margin 6.7%
Financial targetsTarget equity ratio 50% / Target cash and deposits ¥6 billion / DOE guideline 3% / Actual results Equity ratio 49.1% / ROE 10.9% / ROIC 8.7%
Annual DividendFiscal year ending March 2026 ¥36 per share (interim ¥18, year-end ¥18) / Forecast for the fiscal year ending March 2027 ¥38 per share (interim ¥19, year-end ¥19)
Acquisition of treasury sharesThe company will consider opportunistic share buybacks as appropriate. The amount, number of shares and period of the acquisition program are not disclosed
Orders received and order backlogOrders received ¥43,167 million / Order backlog ¥10,351 million
New initiativesCompleted one M&A transaction involving the acquisition of shares in ブリットアプリケーション株式会社, Enhanced the functionality of proprietary solutions and introduced new solutions, including EBOM solutions, Strengthened the sales structure for the SaaS-based ERP solution D-Ever flex, Enhanced PM training and PMO capabilities, Introduction of a Shareholder Benefit Program, Introduced interim dividends from the fiscal year ending March 2027
Items this document does not state (10)
Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioCapital 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.

The reasons given for the decline in profit were restrained hardware sales, lower network construction revenue, additional costs incurred in response to one-off project losses, research and development of proprietary solutions, increased employee compensation and training investment, and higher personnel and other expenses.

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 | DAIKO XTECH,LTD. (8023) timely disclosure | Komori