SIGMAXYZ Holdings (6088): FY2025 Results Summary — Record Ordinary Profit and a Total Payout Ratio Above 100%

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

Note: SIGMAXYZ Holdings labels the fiscal year ended March 31, 2026 as “FY25” and the fiscal year ending March 31, 2027 as “FY26”. The tables and figures below keep the company’s own labels as they appear in the supplementary document.

SIGMAXYZ Holdings reported consolidated revenue of 23.83 billion yen and ordinary profit of 6.35 billion yen for FY25. Revenue decreased by 9% YoY due to factors including a reduction in outsourcing during the second half of the year, and achievement of the revised earnings forecast was 97%. Ordinary profit achievement was 101%, reaching a record high due to factors including a reduction in outsourcing expenses. The company proceeded with revaluation and disposal of assets inherited from the former investment business, recording an extraordinary loss, and as a result profit was down 10%.

Consolidated Results (Full-Year Actual)

Revenue fell 2,462 million yen, or 9%, as three subsidiaries ceased operations or were excluded from the scope of consolidation (revenue of the three companies for the same period last year was approximately 1.8 billion yen) and outsourcing decreased following the sequential go-live of large-scale projects in Q3 and Q4 and a reduced internal personnel utilization rate in Q3. Cost of revenue fell 17% on a significant decrease in outsourcing expenses (40% decrease YoY), lifting the gross profit margin from 44.6% to 49.4%. Operating profit and ordinary profit both rose 8%, while profit attributable to owners of parent declined 10% on an increase in income taxes.

(Unit: JPY mn)	FY24	FY25	YoY change (Amount)	YoY change (Rate)
Revenue	26,293	23,831	-2,462	-9%
Cost of revenue	14,561	12,047	-2,514	-17%
Gross profit	11,731	11,783	51	0%
(Gross profit margin)	(44.6%)	(49.4%)
SG&A expenses	6,092	5,718	-374	-6%
Operating profit	5,638	6,064	425	8%
Ordinary profit	5,876	6,351	474	8%
(Ordinary profit margin)	(22.4%)	(26.7%)
Profit before income taxes	5,819	5,773	-45	-1%
Profit attributable to owners of parent	4,394	3,971	-422	-10%
Comprehensive income attributable to owners of parent	4,197	3,766	-430	-10%

Results Versus the Revised Forecast

Operating and ordinary profits were nearly as planned with regard to the earnings forecast revised in November 2025, and reached a record high in the company’s history. The primary reasons for failing to achieve the revenue forecast were the reduction in outsourcing during Q3 and Q4, and the reduced internal personnel utilization rate during Q3. The equity ratio rose from 72% to 84%.

(Unit: JPY mn)	FY24 results	FY25 results (A)	FY25 consolidated forecasts (revised November 5) (B)	Achievement (A/B)
Revenue	26,293	23,831	24,500	97%
(Reference: Revenue excluding the effects of the three subsidiaries)	(24,702)	(23,207)
Operating profit	5,638	6,064	6,100	99%
Ordinary profit	5,876	6,351	6,300	101%
Profit attributable to owners of parent	4,394	3,971	4,400	90%
Equity ratio	72%	84%

Segment Results

Starting from Q1, information is now disclosed under a single segment (consulting business). Large-scale projects reached the go-live sequentially by Q2, and the revenue share of the top 10 clients decreased, with top 10 client revenue of 10.83 billion yen and a revenue share of 46.7% in FY25 against 13.38 billion yen and 54.2% in FY24. The numbers of projects and clients increased, while revenue per contract declined primarily due to reduced outsourcing during Q3 and Q4. By industry, the main client base consists of transportation, finance, information communication, retail, trading, and construction.

Consulting service	FY23	FY24	FY25	YoY change
Number of projects	941	923	956	+4%
Number of clients	164	155	171	+10%
Revenue per contract (JPY mn)	22.3	26.8	24.3	-9%

On the company’s key performance indicators, the ordinary profit margin on consolidated revenue improved 4.3 pts to 26.7%, the number of consultants rose 11% to 692, and project satisfaction (NSI) was unchanged at 97. During the fiscal year ended March 31, 2026, the company hired 47 mid-career recruits and 81 new graduates, and it is continuing hiring activities aiming for a target of approximately 80 new graduate hires joining in April 2027.

KPI	FY24	FY25	YoY change
Ordinary profit margin on consolidated revenue	22.4%	26.7%	+4.3 pts
Number of consultants	625	692	+11%
Project satisfaction (NSI)	97	97	±0 pts

FY26 Forecast

For FY26 the company forecasts revenue of 25,300 million yen, up 6% (up 9% on the reference basis excluding the effects of the three subsidiaries), with operating profit of 6,600 million yen, ordinary profit of 6,700 million yen and profit attributable to owners of parent of 4,460 million yen. The outsourcing rate is assumed to be at the same level as the second half of the previous fiscal year, and the hiring plans and internal personnel utilization rates are assumed to be at the same level as the previous fiscal year. The company notes that its forecasts are based on information available as of now.

(Unit: JPY mn)	FY25 results	FY26 consolidated forecasts	YoY change
Revenue	23,831	25,300	+6%
(Reference: Revenue excluding the effects of the three subsidiaries)	(23,207)		(+9%)
Operating profit	6,064	6,600	+9%
Ordinary profit	6,351	6,700	+5%
Profit attributable to owners of parent	3,971	4,460	+12%
Annual dividend per share	26 yen	26 yen	±0 yen

Shareholder Returns

The annual dividend was 26 yen, an increase of +5 yen from the previous fiscal year, and the dividend payout ratio exceeded the target value of 50% at 54.5%, with DOE of 15.1%. As part of management focused on capital efficiency, the repurchase of more than 2.6 billion yen in treasury shares was completed during the fiscal year ended March 31, 2026, and in November 2025 3 million treasury shares were cancelled. In FY25 the total payout ratio, including dividends and the repurchase of treasury shares, was 100% or higher, and ROE was 27.8%; although strategic returns to shareholders were carried out, the decline in profit resulted in ROE that was below the level of the previous fiscal year. The company has decided to repurchase treasury shares at an amount of 300 million yen from May to July 2026. For FY26 the forecast annual dividend is 26 yen, unchanged, considering a target dividend payout ratio of 50%.

Dividends and capital efficiency	FY24	FY25	YoY change
Annual dividend per share	21 yen	26 yen	+5 yen
Dividend payout ratio	40.4%	54.5%
DOE		15.1%
ROE	32.0%	27.8%

Medium-Term Plan and Topics

The “Blueprint in FY29” targets are unchanged: revenue of 50,000 million yen (CAGR of approximately 14% from FY24 to FY29), ordinary profit of 15,000 million yen (approximately 21%), an ordinary profit margin of 30%, and 1,100 consultants (approximately 12%). The ROE target is 35% and the target dividend payout ratio is 50%, both for FY29.

(Unit: JPY mn)	FY24 results	FY25 results	FY26 forecasts	Blueprint in FY29 (unchanged)	CAGR (FY24–FY29)
Revenue	26,293	23,831	25,300	50,000	Approx. 14%
Ordinary profit	5,876	6,351	6,700	15,000	Approx. 21%
Ordinary profit margin	22%	27%	26%	30%
Number of consultants	625	692	—	1,100	Approx. 12%

On April 13, the Company resolved to begin considering a capital and business alliance with Core Concept Technologies, Inc. (TSE Growth Market: 4371), including collaboration in a wide range of fields such as digital transformation. As of April 27, 2026, the shareholding ratio is 10.64% (1,874,000 shares), and the company’s intention is to maintain and develop the current amicable relationship while aiming to increase the voting rights ratio to a level where CCT becomes an equity-method affiliate by March 31, 2027. Regarding a capital and business alliance, there are no matters of agreement between the two companies at the present stage, and details such as the acquisition method have not been decided at the present time.

The investment assets inherited from the former investment business to the holding company are recorded as part of investment securities. During the fiscal year ended March 31, 2026, revaluation and sales of investment securities resulted in an extraordinary loss of approximately 660 million yen and a gain on sale of approximately 10 million yen, and the investment balance of inherited assets, including valuation differences, was approximately 2.9 billion yen as of the end of March, against approximately 3.6 billion yen at the end of June 2025 upon inheritance. The company will aim for early sale, taking into account market conditions.

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.