eSOL announced after the market close on 1 September that it had cut its forecast for ordinary profit for the fiscal year ending December 2026 by 10.3% and would suspend the year-end dividend. Ordinary profit for the second half was also reduced from the previous forecast, and the company is expected to pay no dividend.
eSOL cut its full-year consolidated ordinary profit forecast after the market close on 1 September, from the previous forecast of ¥1.19 billion to ¥1.07 billion. Ordinary profit was ¥860 million in the previous fiscal year, and the growth rate is expected to narrow.
The company also announced that it would suspend the ¥4 year-end dividend planned for the current fiscal year, resulting in no dividend. Ordinary profit for the second half is expected to be revised from ¥870 million to ¥750 million, compared with ¥640 million in the same period of the previous fiscal year.
The revision was attributed to expected declines in revenue and profit resulting from MBO-related expenses and a change in the customer development policy for the embedded software business. A new announcement will be needed for the company's future earnings outlook.