Ad-Sol Nissin (3837): FY2025 Results Summary — Record Sales and Operating Income for a Third Straight Year

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

Note: Ad-Sol Nissin’s fiscal year ends in March. Following this site’s convention, the fiscal year ended March 31, 2026 is classified as FY2025; the body text and tables below keep the company’s own labels (FY’26/3 = fiscal year ended March 2026; FY’27/3 = fiscal year ending March 2027).

Ad-Sol Nissin Corporation (TSE Prime 3837) released its Financial Results for FY’26/3 on May 12, 2026. Net sales rose 10.9% year on year to 17,151 million yen and operating income rose 25.4% to 2,145 million yen, with the company reporting record-breaking net sales and operating income for three consecutive years. The gross profit margin improved from 27.8% to 29.0% on higher unit prices and high-margin projects such as consulting services, more than offsetting higher SG&A expenses. For FY’27/3, the company is aiming for record-high revenue and profit for the fourth consecutive fiscal year, and plans an annual dividend of 48 yen, which would be a dividend increase for 17 consecutive terms.

Consolidated Results (FY’26/3 Actual)

According to the company, net sales reached a record high on continued growth in IT investment by clients, with themes including digital transformation, AI, digital data utilization and system modernization, all of which the company describes as comparatively non-susceptible to economic conditions. Growth was driven by the Energy (Electric Power), Transportation and Public Works sectors in the Social Infrastructure Business, and the Service sector in the Advanced Industry Business. Operating income reached a record high as the improvement in the gross profit margin offset the increase in SG&A expenses driven by company-wide compensation revisions for the third consecutive year, the hiring of new graduates and the training of new employees.

Item (Million yen)	FY’25/3 Results	FY’26/3 Results	Increase/decrease	Ratio of change %
Net Sales	15,463	17,151	1,688	10.9
Social Infrastructure Business	9,731	11,183	1,452	14.9
Advanced Industry Business	5,731	5,968	236	4.1
Solution Business	1,209	1,198	(11)	(0.9)
Gross Profit	4,305	4,972	667	15.5
Gross Profit Margin (%)	27.8	29.0	–	–
SG&A Expenses	2,594	2,827	233	9.0
SG&A Ratio (%)	16.8	16.5	–	–
Operating Income	1,710	2,145	434	25.4
Operating Income Margin (%)	11.1	12.5	–	–
Ordinary Income	1,766	2,215	449	25.4
Ordinary Income Margin (%)	11.4	12.9	–	–
Net Income Attributable to Owners of Parent	1,209	1,511	301	24.9
Net Income Margin (%)	7.8	8.8	–	–

In the ordinary income bridge, the increase in net sales contributed +489 million yen and the improvement in the cost of sales ratio +178 million yen, against an SG&A increase of (233) million yen and +15 million yen from others, lifting ordinary income from 1,766 million yen to 2,215 million yen (+¥449 million, +25.4% YoY). At the fiscal year-end, total assets were 10,274 million yen (9,885 million yen a year earlier) and the equity ratio was 65.6%. Cash flows from operating activities were 1,890 million yen (1,027 million yen in FY’25/3), investing activities (14) million yen and financing activities (1,822) million yen, which included dividends paid of (618) million yen and purchase of treasury shares of (1,201) million yen. Cash and cash equivalents at the end of the period were 2,941 million yen.

Segment Results

The Social Infrastructure Business grew 14.9% to 11,183 million yen, raising its share of net sales to 65.2%. In Energy (Electric Power & Gas), the Electric Power field continued to perform strongly, supported by ongoing large-scale DX and modernization projects such as next-generation smart meters, power transmission and distribution equipment-related systems and renewable energy-related systems. Railway-related systems expanded significantly in Transportation (+54.0%), and national security-related systems performed steadily in Public Works (+31.5%). In the Advanced Industry Business (+4.1% to 5,968 million yen), the Service (Payment & Credit Card) sector grew 15.2%, as DX projects related to data management proceeded steadily and the company built a data analysis platform and rebuilt payment systems using AgileLeap for payment service providers. Manufacturing and Enterprise declined.

Orders received totaled 17,560 million yen (+14.2%), a record high for three consecutive terms, and the order backlog was 3,661 million yen (+12.8%), a record high on a fourth-quarter basis.

Segment (Million yen)	Net Sales FY’25/3	Net Sales FY’26/3	Net Sales Ratio of change %	Orders Received FY’26/3	Order Backlog FY’26/3
Entire company	15,463	17,151	10.9	17,560	3,661
Social Infrastructure Business	9,731	11,183	14.9	11,484	2,426
Energy	7,458	8,189	9.8	8,301	1,886
Transportation	838	1,292	54.0	1,427	265
Public Works	998	1,312	31.5	1,317	162
Communication / Network	435	389	(10.6)	438	111
Advanced Industry Business	5,731	5,968	4.1	6,075	1,235
Manufacturing	1,522	1,374	(9.7)	1,381	215
Service	3,078	3,546	15.2	3,716	895
Enterprise	1,130	1,047	(7.3)	977	124
Solution Business	1,209	1,198	(0.9)	–	–

FY’27/3 Forecast

For FY’27/3, the company is aiming to achieve record-high revenue and profit for the fourth consecutive fiscal year, forecasting net sales of 18,200 million yen (+6.1%) and operating income of 2,400 million yen (+11.9%). It notes that robust demand continues amid strong IT investment demand driven by DX, AI and digitalization, and that, looking toward medium- to long-term growth and expansion, it plans to make proactive investments in human resource development and in capabilities related to new technologies such as AI and data management.

Item (Million yen)	FY’26/3 First Half Results	FY’26/3 Full Year Results	FY’27/3 First Half Forecast	FY’27/3 Full Year Forecast	Full Year Increase/Decrease	Ratio of Change (%)
Net sales	8,506	17,151	8,800	18,200	1,048	6.1
Operating income	1,103	2,145	1,150	2,400	254	11.9
Operating income margin (%)	13.0	12.5	13.1	13.2	0.7P	–
Ordinary income	1,136	2,215	1,180	2,470	254	11.5
Ordinary income margin (%)	13.4	12.9	13.4	13.6	0.7P	–
Net income attributable to owners of parent	750	1,511	770	1,610	98	6.5
Net income margin (%)	8.8	8.8	8.8	8.8	0.0P	–

Shareholder Returns

The annual dividend for FY’26/3 was 46 yen (interim 18 yen, year-end 28 yen); according to the dividend chart, the FY’26/3 dividend includes a 5.0 yen 50th Anniversary Commemorative Dividend. For FY’27/3, the company forecasts an annual dividend of 48 yen (interim 24 yen, year-end 24 yen), up 2 yen year on year, which would mark a dividend increase for 17 consecutive terms. Per-share figures are shown after taking into account stock splits, including a 2-for-1 stock split on April 1, 2025. In addition, the company repurchased 632,600 of its own shares through off-auction own share repurchase trading (ToSTNeT-3) on February 19, 2026, and canceled 600,000 shares of common stock on March 31, 2026 (3.35% of total shares issued before cancellation) to enhance shareholder value.

Item	FY’25/3	FY’26/3	FY’27/3 (Forecast)
Dividend per share (yen)	30.0	46.0	48.0
Net income per share (yen)	65.80	86.85	95.61
ROE	17.2%	22.2%	22.7%
Dividend payout ratio	45.6%	53.0%	50.2%
DOE	7.7%	11.6%	11.4%

Growth Strategy and Medium-term Management Plan

Under its FY’26/3 focus points of establishing a next-generation SI business model to shift to growth businesses, the company continued consultant development, with 13 senior consultants and 45 consultants as FY’25/3 results and a plan to train 50 consultants in FY’26/3. In geographic information systems, it concluded a strategic partnership with Asia Air Survey toward a Smart City Integrated Platform (Urban OS) using digital twins, and released a tablet version of DOCOYA, its SaaS-type commercial area analysis solution with AI functions, in April 2026. In AI, it expanded its +AIdea service offerings and established an AI Business Development Dept. in April 2026, and it launched joint research with the Tohoku University Cyberscience Center on a next-generation AI-ready digital platform. On human capital, 73 new graduates joined the company, the starting salary was raised to ¥290,000, and the turnover rate was 5.8% in FY’26/3.

The materials state that a new Medium-term Management Plan was scheduled to be announced on May 20, 2026, followed by an online briefing on FY’26/3 financial results and the new plan for institutional investors and analysts on May 21, 2026. The contents of the new plan cannot be confirmed from the materials.

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.