Daiwabo Holdings (3107): FY2025 Results Summary — Record Sales and Profit on Windows 10 and GIGA School PC Demand

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

Note: Daiwabo Holdings does not publish an officially translated English results presentation (the English-language version of its results materials is machine translated and provided for reference purposes only); this article is based on the company’s Japanese-language results presentation, with figures transcribed as reported. This site classifies the most recently completed fiscal year as FY2025; the company reports this period as the fiscal year ended March 31, 2026 (shown as FY3/26 below), and labels in this article follow the company’s materials.

Daiwabo Holdings Co., Ltd. (3107), whose group centers on IT infrastructure distribution through subsidiary Daiwabo Information System (DIS), reported record-high consolidated net sales of 1.3508 trillion yen (up 18.8% year on year) for the fiscal year ended March 31, 2026, a record for the second consecutive period. Consolidated operating income reached 44.1 billion yen (up 26.6% year on year), setting a new record for the first time in five periods and clearly surpassing the 35.0 billion yen posted in the fiscal year ended March 2021. The company states that it captured nationwide PC replacement demand associated with the Windows 10 end of support and the second phase of the GIGA School program, and that EPS rose 90.7 yen year on year to a record 362.07 yen.

Consolidated Results (Full-Year Actual)

Net sales were 1,350,879 million yen (up 18.8%, or 214,062 million yen, year on year) and operating income was 44,169 million yen (up 26.6%). Ordinary income was 44,943 million yen (up 26.8%) and net income attributable to owners of parent was 32,030 million yen (up 29.4%). Against the forecast revised on November 6, net sales finished 1.0% higher, operating income 1.8% lower, and net income 4.0% higher; versus the initial plan, operating income came in 14.7% higher. ROE was 19.9% (16.8% in the previous fiscal year), exceeding the medium-term plan target of 14% or more, and ROIC was 16.9% against a target of 12% or more. ROA was 10.0% and the operating margin was 3.3%. The equity ratio rose 2.2 points to 36.8%, and cash flow from operating activities was 14,569 million yen (5,909 million yen in the previous fiscal year).

Item	FY3/26	FY3/25	YoY
Net sales (million yen)	1,350,879	1,136,817	+18.8%
Operating income (million yen)	44,169	34,899	+26.6%
Ordinary income (million yen)	44,943	35,454	+26.8%
Net income attributable to owners of parent (million yen)	32,030	24,751	+29.4%
EPS (yen)	362.07	271.37	+33.4%
Operating margin	3.3%	3.1%	—
ROE	19.9%	16.8%	—

Segment Results

In the IT Infrastructure Distribution business, net sales rose 18.9% to 1,336,479 million yen and operating income rose 26.4% to 43,030 million yen. Corporate PC demand tied to the Windows 10 end of support was strong in the first half, and education-sector shipments under the second phase of the GIGA School program peaked from the third quarter onward, lifting annual PC shipments 67.9% to a record 6.540 million units; server shipments fell 18.4% to 50 thousand units on the reaction to large deals in the previous fiscal year. Transaction volume (gross-basis handling volume, a supplementary indicator) was 1,428,365 million yen, up 18.3%. Transaction volume via the iKAZUCHI subscription management portal grew 34.6% to 54,570 million yen, exceeding the 52.0 billion yen target, with contracts exceeding 160,000 (up 16.4%) and end users at approximately 120,000 companies (up 19.5%). The company states that its share of domestic corporate PC shipments reached 46.8% and that it is involved in more than one in three PCs in Japan.

In the Industrial Machinery business, net sales rose 11.7% to 14,400 million yen and operating income rose 32.3% to 1,127 million yen. Domestic orders increased 59.2%, led by the mainstay aircraft industry as well as shipbuilding and energy, while overseas orders declined 12.6% on lower orders from China and the United States. The company achieved higher sales and profit despite the lingering impact of the ransomware attack that occurred last year, helped by large-machine sales and growth in higher-profitability service revenue such as overhauls and maintenance.

Segment	Metric	FY3/26	FY3/25	YoY
IT Infrastructure Distribution	Net sales (million yen)	1,336,479	1,123,922	+18.9%
IT Infrastructure Distribution	Operating income (million yen)	43,030	34,045	+26.4%
Industrial Machinery	Net sales (million yen)	14,400	12,895	+11.7%
Industrial Machinery	Operating income (million yen)	1,127	852	+32.3%
Total (consolidated)	Net sales (million yen)	1,350,879	1,136,817	+18.8%
Total (consolidated)	Operating income (million yen)	44,169	34,899	+26.6%

Forecast for the Fiscal Year Ending March 31, 2027

For the fiscal year ending March 31, 2027, the company forecasts net sales of 1,189,000 million yen (down 12.0%), operating income of 36,500 million yen (down 17.4%), ordinary income of 36,700 million yen (down 18.3%), and net income attributable to owners of parent of 25,300 million yen (down 21.0%), with EPS of 291.09 yen. The company expects a sales decrease of approximately 200.0 billion yen from the reaction to the prior year’s special demand, including a decline of approximately 900,000 units in Windows 10 replacement PC demand and the post-peak reaction in GIGA School shipments. It also flags surging memory prices, noting that PC prices have risen 20% to 30% since April, and expects the gross margin to improve from 7.0% to 7.4%. By segment, it forecasts IT Infrastructure Distribution net sales of 1,174,500 million yen (down 12.1%) with operating income of 35,000 million yen, and Industrial Machinery net sales of 14,500 million yen (up 0.7%) with operating income of 1,500 million yen (up 33.1%).

Item	FY3/27 (Forecast)	FY3/26 (Actual)	YoY
Net sales (million yen)	1,189,000	1,350,879	△12.0%
Operating income (million yen)	36,500	44,169	△17.4%
Ordinary income (million yen)	36,700	44,943	△18.3%
Net income attributable to owners of parent (million yen)	25,300	32,030	△21.0%
EPS (yen)	291.09	362.07	△19.6%

Shareholder Returns

For the fiscal year ended March 31, 2026, the company raised the year-end dividend by 5 yen to 55 yen, bringing the annual dividend to 105 yen per share (payout ratio 29.0%). It also executed share buybacks of approximately 8.0 billion yen and retired approximately 7.87 million shares, for a total return ratio of 53.8%. For the fiscal year ending March 31, 2027, it plans an annual dividend of 110 yen (interim 55 yen, year-end 55 yen; forecast payout ratio 37.8%) and share buybacks of up to 6.0 billion yen, with the acquired shares to be retired, for a forecast total return ratio of 61.6%. The stated policy is a payout ratio of 30% or more with progressive dividends during the current medium-term plan period, combined with flexible share buybacks targeting a total return ratio of around 60% or more.

Item	FY3/26 (Actual)	FY3/27 (Forecast)
Interim dividend (yen)	50	55
Year-end dividend (yen)	55	55
Annual dividend (yen)	105	110
Payout ratio	29.0%	37.8%
Total return ratio	53.8%	61.6%
Share buyback	Approx. 8.0 billion yen (executed)	Up to 6.0 billion yen (shares to be retired after acquisition)

Medium-Term Plan Progress and Topics

Under the medium-term management plan covering the fiscal years ending March 2025 through March 2027, the company states that it has substantially exceeded its initial targets for two consecutive years, achieving the plan’s “challenge to surpass record highs” with record net sales and operating income in the fiscal year ended March 31, 2026. Both group capital-efficiency targets were met, with ROE of 19.9% against a target of 14% or more and ROIC of 16.9% against a target of 12% or more, each above the company’s self-recognized cost of capital (cost of shareholders’ equity of 7.23% to 7.64%; WACC of 6.7% to 7.1%). The forecast for the fiscal year ending March 31, 2027 was raised further from the initial plan.

Under its medium- to long-term vision “2030 VISION,” the company targets operating income of 50.0 billion yen in fiscal 2030 as an All-in-One Solution Company in the IT field. As a first step toward expanding its business domains, it entered into a capital and business alliance with BCC Co., Ltd., which operates an IT personnel business. The company also announced that, subject to approval of articles-of-incorporation amendments at the 116th annual general meeting of shareholders scheduled for June 26, 2026, it will change its corporate name to MUSUBITE Co., Ltd. on April 1, 2027; subsidiary Daiwabo Information System will likewise be renamed DIS Co., Ltd. (standing for Delightful Ideas & Solutions). The next medium-term management plan is scheduled to be announced in May 2027.

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.