Sigmaxis Holdings explained at its FY2026 interim earnings briefing that net sales declined 8.6%, but fell only 4% on an underlying basis. The company announced plans to pursue a capital alliance with Itochu Corporation, become an equity-method affiliate and purchase ¥1.8 billion of its own shares.
In materials for its earnings briefing on the second quarter of the fiscal year ending March 2027, published on 5 November 2026, Sigmaxis Holdings reported consolidated net sales of ¥11.475 billion, down 8.6% year on year, and ordinary profit of ¥2.784 billion, down 17.6%. The company cited a decline in large projects involving the use of subcontractors and the impact of a subsidiary that was excluded from the scope of consolidation as factors behind the decrease in sales, explaining that the underlying decline excluding the subsidiary impact was limited to 4%.
On the earnings front, cost of sales decreased 10.4% as subcontracting costs fell by approximately 40%, and the gross profit margin improved by 1 percentage point to 48.4%. SG&A expenses increased due to the reversal of the previous year's bonus provision, while operating profit fell 15.7% to ¥2.695 billion. The ordinary profit margin nevertheless remained high at 24.3%.
Business KPIs showed project numbers increasing 9% year on year to 526 and the number of clients increasing 14% to 140, driven by growing demand for core system renewal and AI and data management. Although sales per contract declined, the overall utilization rate showed signs of recovery. Hiring consisted of 26 experienced hires and 79 new graduates, with approximately 60 new graduates expected to join in April 2027.
The full-year forecast remains unchanged from the figures announced in May 2026, with net sales of ¥25.3 billion, ordinary profit of ¥6.7 billion, net income of ¥4.46 billion, EPS of ¥54.91 and an annual dividend of ¥26. Interim progress was 45% for net sales and 42% for ordinary profit.
As part of its capital policy, the company resolved to enter into a capital and business alliance with Itochu Corporation and will proceed with the disposal of treasury shares and the execution of a new capital and business alliance agreement. The voting rights holding ratio is expected to exceed 20% outside the market, with completion scheduled by 15 December 2027. The company will add ¥1.8 billion to its treasury share purchases and aims for a total payout ratio of at least 80%.