CAC Holdings reported progress for the first half at its second-quarter earnings briefing and indicated that it had made the unusual decision to leave its full-year forecast unchanged. The company also reported that its transformation of the business portfolio had brought the ratio of new business areas to approximately 25%.
Second-quarter progress reached 52.9% of the full-year forecast for net sales and 54.4% for adjusted EBITDA, exceeding the halfway mark. Management clearly indicated that it would prioritize transformation over short-term results. Although the full-year earnings forecast was left unchanged in light of first-half performance, management indicated that it would proceed cautiously with the allocation of investment resources on a quarterly basis.
President Nishimori (西森) emphasized the results of the business portfolio transformation and explained that the sales mix of non-contiguous and adjacent areas acquired through M&A had reached approximately 24.9%. Product groups holding leading market shares, mainly at newly consolidated subsidiaries, had been added to the portfolio, resulting in a substantial increase in the ratio based on measurements from the fourth quarter of 2025 onward.
The financial highlights included positive factors such as net sales of ¥27.241 billion, up 8.2% year on year, and gross profit of ¥7.547 billion, up 11.4%. Adjusted EBITDA, however, was ¥2.093 billion, down 4.5% year on year, primarily due to one-time M&A-related expenses, human capital investment and investment in AI growth, according to the explanation provided.
Orders received totaled ¥28.735 billion and the order backlog stood at ¥20.442 billion, both above the prior-year levels. Growth in overseas IT made a particularly strong contribution, supporting the overall structural transformation. The company indicated that it would pursue future value creation by achieving and advancing its target for the automation rate of Azure Agent Plus as part of its AI transformation, while expanding the use of AI in Japan and overseas.