EXEO Group (1951): FY2025 Results Summary — Record Orders and Sales Driven by Next-GIGA Demand

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

EXEO Group, Inc. (TSE: 1951) reported record-high orders received and net sales for FY2025 (the fiscal year ended March 31, 2026), largely driven by demand for Next-GIGA projects. Orders received rose to 811.8 billion yen and net sales to 787.7 billion yen, while operating profit reached 52.0 billion yen. All segments posted increased profits, and the company states that operating profit significantly exceeds the medium-term management plan target. The year-end dividend for FY2025 was increased by 2 yen, and from FY2026 the dividend policy will be changed to a 4.5% DOE standard.

Consolidated Results (Full-Year Actual)

Both orders received and net sales increased year on year to all-time highs, coming in well above the company’s own FY25 plan of 720.0 billion yen for orders and 710.0 billion yen for net sales. Construction projects being carried over also increased significantly, from 390.3 billion yen to 418.1 billion yen. Operating profit grew by 9.6 billion yen year on year to 52.0 billion yen, an operating profit margin of 6.6%, with the company noting that profits increased in all segments despite one-off factors.

Item (billion yen)	FY24	FY25 Plan	FY25 Actual
Orders Received	712.4	720.0	811.8
Net Sales	670.8	710.0	787.7
Operating Profit	42.4	—	52.0
Construction projects being carried over	390.3	—	418.1

The company describes the year-on-year change as a +14% increase in orders received and a +17% increase in net sales. The operating profit bridge from FY24 to FY25 is presented as Telecom Carriers +2.2, Urban Infrastructure +4.2 and System Solutions +3.8 billion yen, against a one-off factor of ▲0.6 billion yen, for a net increase of +9.6 billion yen.

Segment Results

Under the segment structure applied in FY2025, all three reporting segments recorded higher net sales and higher segment profit. System Solutions showed the largest sales increase, from 200.6 billion yen to 283.5 billion yen. In Urban Infrastructure, the company discloses a special factor of 0.6 billion yen of unprofitable projects; excluding that factor the slide shows segment profit of 17.0 billion yen and a margin of 6.9%, versus the reported 16.4 billion yen and 6.6%.

Segment (billion yen)	Metric	FY24	FY25
Telecom Carriers	Net sales	252.5	255.6
Telecom Carriers	Segment profit (margin)	21.1 (8.4%)	23.3 (9.1%)
Urban Infrastructure	Net sales	217.6	248.4
Urban Infrastructure	Segment profit (margin)	12.9 (5.9%)	16.4 (6.6%)
System Solutions	Net sales	200.6	283.5
System Solutions	Segment profit (margin)	8.4 (4.2%)	12.2 (4.3%)

FY2026 Forecast

For FY2026 the company expects a significant decrease in revenue due to the fall-off in Next-GIGA project demand, but aims to increase operating profit to 56 billion yen by focusing on improving profitability in the social infrastructure segment. The plan calls for orders received of 770.0 billion yen and net sales of 750.0 billion yen, with the operating profit margin rising from 6.6% to 7.5%.

Item (billion yen)	FY2025 Actual (A)	FY2026 Plan (B)	YoY (B−A)
Orders Received	811.8	770.0	▲41.8
Net Sales	787.7	750.0	▲37.7
Operating Profit	52.0 (6.6%)	56.0 (7.5%)	+4.0 (+0.9P)

Business Segment Reorganization and FY2026 Segment Plan

From FY2026 the company has restructured its business segments to reinforce segment-specific management and improve clarity of operations. The former Telecom Carriers, Urban Infrastructure and System Solutions segments become Communications Infrastructure, Social Infrastructure and System Solutions, with the infrastructure sharing business moved into Communications Infrastructure. On the new basis, the FY2026 plan shows higher sales and profit in Communications Infrastructure and Social Infrastructure, while System Solutions sales decline from 267.2 billion yen to 217.0 billion yen as Next-GIGA special demand falls away, with segment profit still planned to rise to 13.4 billion yen and the margin to 6.2%.

New segment (billion yen)	Metric	FY25	FY26 Plan
Communications Infrastructure	Net sales	271.2	281.0
Communications Infrastructure	Segment profit (margin)	25.2 (9.3%)	27.6 (9.8%)
Social Infrastructure	Net sales	249.2	252.0
Social Infrastructure	Segment profit (margin)	14.5 (5.8%)	15.0 (6.0%)
System Solutions	Net sales	267.2	217.0
System Solutions	Segment profit (margin)	12.2 (4.6%)	13.4 (6.2%)

Initiatives by Segment

In Communications Infrastructure, NTT Group projects drew strong order acquisitions and sales, leading to a significant improvement in profit margins; NCC investment restraint continued although there was a slight increase in the Rakuten project, and CATV projects struggled while overseas sharing businesses gained momentum. On the new segment basis, Access sales were 155.8 billion yen in FY25 and are planned at 157.0 billion yen in FY26, with Network at 24.1 then 26.0, Mobile at 38.4 then 46.0, NCCs at 37.2 then 34.0, and Sharing at 15.5 then 18.0 billion yen. In Social Infrastructure, the company cites on-going orders for large-scale data center projects, large-scale construction contracts including electrical work for public facilities and battery storage projects, and improved sales and profits as ongoing projects proceeded as planned both domestically and internationally; the FY26 plan splits net sales into 137.0 billion yen for the electrical business and 115.0 billion yen for the social infrastructure business. In System Solutions, FY25 benefited from special demand for Next-GIGA projects (FY25 only), synergies from collaboration within the group and cross-selling, and improved profitability in overseas solutions; the FY26 plan splits net sales into 177.0 billion yen for Information System and 40.0 billion yen for Service.

Main initiatives set out for FY2026 include continuing quality enhancement and capacity improvement projects at a high level and maximizing profits through cost efficiency across the entire group in Communications Infrastructure; strengthening data center sales and construction capabilities through enhanced in-group collaboration and establishing cost estimation and construction capabilities for large-scale HVAC projects in Social Infrastructure; and strengthening upstream consulting, fundamental productivity reform through the use of AI, and leveraging global solutions and procurement capabilities in System Solutions.

Shareholder Returns

Following the strong performance in FY2025, the year-end dividend for FY2025 will be increased by 2 yen, bringing the annual dividend to 68 yen. For FY2026 the dividend policy will be changed from a 4.0% DOE target to a 4.5% DOE standard, with a planned annual dividend of 80 yen, marking the 15th consecutive year of dividend increases. The company will continue share buybacks of 4 billion yen, aiming for a total shareholder return ratio of 60%. The materials also note a closing share price in FY25 of ¥2,668.5.

Topics

In Social Infrastructure, the company introduces “Edge Data Center Solutions” with two menu options, modular and container types, providing comprehensive support from hardware selection to installation as a one-stop solution, and is exploring development of an economically efficient packaged data center solution combining refurbished GPU servers procured by the EXEO Group. In System Solutions, the company launched an offering service brand named EX-LIGN, combining EX (EXEO Group) with ALIGN, covering consultation, system and network infrastructure implementation, and continuous improvement through operation and maintenance support. The company also describes a joint demonstration project with Fukuyama Reizo Co., Ltd. to optimize cold chain energy efficiency by visualizing cold storage warehouse operating data, which confirmed the possibility of reducing power consumption through optimized refrigeration unit operations.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.