Allied Telesis Holdings disclosed revenue and earnings for the interim period of the fiscal year ending December 2026. Against a backdrop of federal government projects in the Americas and defense-related projects in EMEA, the company is pursuing a transformation of its business portfolio, and attention is focused on the shift in its earnings structure toward achieving its 2028 medium-term plan.
Revenue for the interim period of the fiscal year ending December 2026 was ¥23,488 million, down 1.0% year on year, while operating profit was ¥1,161 million, down 14.0%. The declines were attributable to the transfer of the Americas IP triple-play business and increases in personnel and research and development expenses, although the gross profit margin improved to 60.0%. By region, demand in Japan’s public-sector market and orders related to the federal government in the Americas supported performance, while in EMEA, the order environment in the public-sector and defense fields remained firm despite delays in the progress of some projects.
For the full fiscal year 2026, the company expects revenue of ¥52,000 million, up 4.3% from the previous fiscal year, and operating profit of ¥3,600 million, up 5.1%. It revised its operating profit forecast upward, citing an improvement in the gross profit margin and restraint in selling, general and administrative expenses. The transfer procedures for a U.S. subsidiary are expected to be completed in the third quarter, with the gain on the business transfer expected to be recorded as extraordinary income. The company will streamline non-core businesses while redirecting resources toward higher-value-added businesses.